What is an Insurance Broker?

Let’s take a deep dive into Insurance Broking, including what that means for you as a potential client.

Many clients assume all brokers are the same but we know that is not correct. An Insurance Broker is a qualified risk advisor that specialises in providing appropriate insurance solutions for their client. Insurance Brokers are typically utilised for Commercial Insurance as the risks are more complex and the cover often needs to be tailored with the assistance of a professional and trusted insurance advisor. Insurance Brokers must comply with all legal and regulatory obligations to ensure they are acting in the best interest of the client. Insurance Brokers act for their client and not the insurance companies or underwriting agencies they place business with.

What do Insurance Brokers do?

Insurance Brokers provide an end to end holistic solution for insurance and risk management. Insurance Brokers assess insurance risks, collect relevant data, source and tailor insurance products, whilst also advising and recommending the most appropriate insurance solution. They will also assist and manage an insurance claim that might occur during the year.

How to become an Insurance Broker in Australia?

To become a qualified and practicing insurance broker in Australia you must complete the relevant qualifications to provide advice under financial services law. Once you’re authorised, continuing professional development (CPD) are required as an ongoing commitment to ensure sufficient development, knowledge and training is maintained to comply with ASIC guidelines. As a client, you should ask what experience does your broker have and what are their qualifications. Do they understand your business and your industry?

How much do Insurance Brokers cost?

The cost of an Insurance Broker will vary between each brokerage, particularly for corporate insurance programs where there is more flexibility with the cost structure. The cost of an Insurance Broker will depend on the complexity of the risk and the time spent on securing insurance markets to underwrite the risk.

Brokers can be paid a commission which is paid by Insurers and is generally a percentage of the premium. A Broker Fee may also be charged which is shown on the Insurance Invoice and paid by the client.

How to choose the right Insurance Broker for you

Whilst there is no simple answer, the most appropriate solution is to seek a reference from a colleague or associated business or have potential insurance brokers present to you their services and how they can help you. Get to know them before proceeding with the quotation and advice process.

Some key areas that you may want to understand include:
          1. What industries / products do they specialise in?
          2. What are their qualifications and experience?
          3. What are their broking services and does this remain consistent each year?
          4. How will they manage any claims or incidence that arise?
          6. What industry bodies are they members of?
          7. Are they based locally or visit the area on a regular basis
8. Do they own the broking business or are they an employee

Sometimes having these discussions can help businesses prepare for different situations as time passes.

‍Disclaimer:

The information provided by Hunter Broking Group Pty Ltd on this website is for general information purposes only, and it is not a substitute for professional advice. You should always consider the PDS/Policy wording before making a decision. Coverage may differ based on specific clauses in individual policies. Refer to the FSG on our website or by requesting a copy for our services and remuneration details.

General contents with set limits	Limit	Option to increase limits?
Jewellery, or items containing gold or silver	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Watches (except smart watches)	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Cameras and photographic equipment and accessories	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Collections or sets, like stamps, memorabilia, documents, medals or coins	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Pictures, paintings, works of art	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Antiques or Oriental rugs	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Commercially recorded or downloaded media content, including audio, video, phone or tablet applications and games	$2,000 in total
Spare parts or accessories (excluding keys) which are not fitted or being used for the following: motor vehicles farm vehicles caravans and trailers watercraft aircraft	$4,000 in total
Money, cheques, and other negotiable instruments	$2,000 in total
Contents intended to be kept outside, like Your barbeque, outdoor furniture and children’s play equipment.	$10,000 in total
Contents in a locked storage cage in the basement of a strata title development at the insured address	$5,000 in total
Laptops, tablets, mobile phones, portable computers and their accessories (see optional Listed Portable Contents cover on page 48 for ways to increase limits on these items)	$3,500 per item
Smart watches and other wearable technology	$1,500 per item
Drones and other remotely or autonomously piloted aircraft (covered only when not in use and not used for business).	$1,500 per item

General contents with set limits

Limit

Option to increase limits?

Jewellery, or items containing gold or silver