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An insurance broker is a regulated intermediary who works between the client and insurance providers to help clients find the right insurance policies for their needs.
Brokers are regulated by the Financial Conduct Authority (FCA). It’s their job to provide trusted information to help clients review their options and choose tailored insurance.
This guide will help you understand the role of an insurance broker, how it differs to price comparison websites and agents, and key things to consider when buying insurance.
What does an insurance broker do?
Insurance brokers provide a range of services that usually go beyond just finding a quote for a new insurance policy, which can include:
- providing information on different insurance products
- managing new and existing policies
- supporting with the renewals process
- handling claims
Types of insurance brokers
A significant distinction is whether the broker’s service is advised or non-advised.
Advised brokers
An advised broker provides a personal recommendation about which insurance policies and covers to buy. They do this by assessing your needs and business’s risks, and then looking at a wide range of insurance options to give you a recommendation.
Non-advised brokers
This type of broker will only provide information and doesn’t give any advice or recommendation about which cover to buy. They’ll ask questions to help you narrow down the insurance options available to you and give you information about each one. It’s then up to you to decide which policy or covers to buy.
The number of insurance providers they work with can vary significantly, from just one up to a wide range of market providers (each broker will make clear how they do this).
How do brokers work?
You can access an insurance broker’s service online, by phone, or face-to-face (or a mix of all three).
Simply Business is an intermediary, providing a non-advised service both online and by phone. We work with a number of insurance providers to be able offer a portfolio of business and landlord insurance products.
Other ways to buy business or landlord insurance
You can also buy insurance directly with an insurance company, through an agent, or by using a price comparison website. We explain a bit more about each one below.
Direct insurers
Direct insurers sell policies directly to customers without using brokers and intermediaries. They’ll usually look after everything after you’ve bought your insurance too, for example if you need to make changes to your policy, renew, or make a claim. They usually only sell their own products, which means you can’t get quotes from other insurers.
Insurance agents
Insurance agents are much rarer than they once were due to the shift to brokers and direct insurers in recent decades. They usually represent one insurance company and only offer their products.
Price comparison websites
Most people come across price comparison websites (PCWs) when searching for home and motor insurance. These sites let you compare quotes from many different insurance providers at once, without having to visit each company’s website individually. PCWs act as a digital marketplace to help you find a suitable policy. They usually offer quotes from a large number of providers, but it won’t be everything on the market.
A key difference is that you don’t buy your insurance with the PCW, you’re taken directly to the insurance provider after you select their quote. And the PCW doesn’t support you with any policy administration after you’ve taken out the cover either.
For business and landlord insurance, PCWs tend to work differently to motor and home insurance. Instead they normally partner with a third-party company to provide quotes from a range of insurance providers.
MoneySuperMarket is an example of a price comparison website that offers landlord and business insurance quotes from a range of insurers. You can search based on your needs and budget to find a policy that’s right for you*.
Final thoughts – explore all your options
Brokers, agents, direct insurers and comparison sites all have their place when it comes to researching the best business insurance option for your needs. Which one you choose depends on your business and what’s important to you – whether that’s price, convenience, simplicity, or advice. The information in this article could help you decide which options to choose.
This article is intended as a guide. It’s always best to speak to an expert if you’re not sure of anything.
*Simply Business works in partnership with MoneySuperMarket to provide the business and landlord insurance quotes. After a sale is completed we’ll provide the ongoing policy administration support and offer any future renewals.