Published with permission from Vero Insurance New Zealand.
If you own a business that’s growing or expanding, any number of things could be on your mind – from financial worries to finding employees to business planning. One thing that may not be on your mind is insurance. But as your business grows, protecting it can become more complex and there can be real value in getting expert insurance help from a broker or adviser.
The increase of direct insurance
In Australia, the use of brokers by SMEs has been significantly impacted by the rise of online insurance purchasing. Although this has been slower to happen here, we eventually expect to see a similar trend in New Zealand.
Right-sizing your insurance
Research shows there are a couple of different factors influencing whether a small business will use a broker to purchase their insurance, but the main one is the size of the business.
36% of businesses with 0 to five employees are likely to purchase their insurance directly from an insurer or a bank. For small businesses of six to 19 employees, the number drops to 23%.
It’s believed this might be because as your business grows, protecting it becomes more complex.
6 reasons to use a broker or adviser
For Vero’s SME Index, they surveyed over 1000 small to medium sized businesses in New Zealand, to uncover the value they get from their brokers. Here’s what they said:
- 58% to save time
- 53% to get the right insurance at the right price
- 39% for peace of mind
- 37% because their broker understands their business needs
- 64% to advocate for them with their insurance company
- 60% for managing the claims process
Make it a decision – not an accident
Everyone – and every business – is different. You may buy your insurance through a broker from your first day as a sole trader, or you may feel comfortable handling your own insurance even with 10 or 20 employees. You want to think about whether your insurance needs are changing, and whether you still have the knowledge and time to manage them or whether you’d benefit from the help of a broker or adviser.
Want more information?
When you’re ready to speak with someone about your unique needs, get in touch with Brian at High Street Brokers for individual advise, unique to your business.