Why You Need a Good Risk Insurance Broker

Posted on October 01, 2020

Optimizing on insurance can be an onerous task for any business, organization or even an individual. It is a balancing act between need and cost. That is why it is critical to get a strong team of experienced, professional consultants to help you through the process. Many professional indemnity/negligence claims arise from wrong advice of failure by your consultant to advise accordingly.
The role of a broker/consultant constitutes of the following: –

1. Risk Profiling
This entails understanding the nature of your business/operations to ensure that you get the correct covers in place, that give you the right kind of coverage.

2. Review and Gap Analysis A good broker/consultant will constantly review your risk as your business/organisation changes and advise on emerging risks, and changes that affect your insurances, such as laws (WIBA, Motor Vehicle Third Party Act, Finance Amendment Act, etc.) and developments (such as the impact of Covid-19), that are relevant to your operations, as well as availability of new products.

3. Cost Optimization Another key role of a broker/consultant will be to ensure you get the best value for money by balancing the cost and the quality of coverage. In some cases, organizations will just look at the cost at the expense of proper coverage. It is imperative that the broker/consultant highlight the pros and cons to a client, where the client has opted for a cover that the broker deems inferior. Another way a broker can save you money is by advising on covers that you may have in place that may have been taken by events, be outdated, or may no longer be required due to changes in law, business environment or needs.

4. Policy Review Your consultant will also advise of the implication of clauses, exceptions and warranties in the policy that may impact claim settlement.

5. Auxiliary Services Your consultant acts as your advocate in the event of a claim and other negotiations involving third parties. They also facilitate auxiliary services such as motor vehicle valuations and risk surveys. By John Nyaga