Opinion

Working With A Broker Vs. Going Direct – Which Is Best For Your Business?

If you’re running a startup, chances are you’re going to need insurance. And when it comes to sourcing your cover, you often end up just going directly to an insurer online. When it comes to growing your business, though, partnering with a broker is actually much more conducive to success.

Easy for us to say, we know. But here’s why…

Photo by Jason Goodman

Scaling up requires a different approach

Your business isn’t static, which is why your insurance shouldn’t be either. Put it this way – each time you reach a new level of success, you also open yourself up to a new level of risk.

Back when you first purchased your policy from your provider, your requirements were probably a lot simpler. You maybe got a start-up package that includes the insurance you legally require, like Employers’ Liability, as well as the likes of Professional Indemnity and Public Liability as a bare minimum.

Then things began to go well, you started to scale – but that means things also became more complex. Now, you may need more coverage in specific areas to protect you against different claims. If you take funding, for example, you’ll need Directors’ & Officers’ Liability, maybe Key Person insurance.

It’s very unlikely an insurer will offer all these types of cover. And even if they do, they won’t be specialists in each one, and won’t have the best pricing and coverage across the board.

What’s more, most online insurers sell on a ‘non-advised basis’. That means they can’t recommend different packages or make sure you have the right cover – it’s on you to browse their products and pick the right one. That also means you may even end up paying for insurance that no longer applies to where you are today.

Signs you’ve outgrown your insurer

As your startup matures, there are a few key indicators to confirm your needs are being met. For instance, how much is your annual turnover? Most insurers will outline a maximum permitted figure in your policy – once you’ve exceeded it, it’s time to adjust your cover.

Then there’s when you receive funding… A broker that knows what investors will expect (and the specific cover you’ll need) is crucial.

Or maybe you’re ready to take your business to the next level by expanding into new markets. First, you’ll need to establish which markets you’d like to break into, before plotting your growth and identifying any challenges you may face along the way. With those new challenges come new risk profiles – and along with them, the need to upgrade that insurance policy.

Similarly, if you’re eyeing international expansion, robust insurance safeguards you against any unforeseen issues. Whether you’re providing services from your UK base (and just need to tweak your insurance to cover other countries) or opening offices overseas (and need to be aware of local laws), a specialist broker acts as much as an advisor as an insurance provider.

But the changes to your business don’t need to be this big to call your current coverage into question. Things that seem fairly minor – like onboarding key personnel, handling more data than usual, getting a new office, and transporting goods – can leave you exposed risk-wise.

The benefits of using a broker

A broker leaves no stone unturned in their mission to protect your business – drawing on expert knowledge to identify areas of cover that you may not have even considered. This gives you ample room to grow and thrive as your objectives evolve over time.

The good news? You don’t have to necessarily switch insurers to start working with a broker! In most cases, you can appoint one to your existing policies by signing a Letter of Appointment. We can then speak to insurers on your behalf and make any necessary amends to the policy.

Since insurance brokers are impartial, we make your best interests our number one priority – advising like an extension of your internal team. This also gives you freedom to choose from a range of insurance providers, allowing you to make informed policy comparisons and find a solution that doesn’t just cover all bases but fits your values and ambitions too.

We also take a proactive approach, getting to know your business inside and out. Then, while you focus on your continued growth, you can count on us to keep track of your financials and movements in the insurance market, updating policies in real time and continuously finding you the best terms at the best rates (if you go direct, you’re only ever seeing their best price). We’ll also handle any paperwork and claims so that you don’t have to, ultimately saving you time and money.

Photo by Michał Parzuchowski

Capsule’s difference

Looking for peace of mind that your business is prepared for every eventuality? Capsule can help with that. Our specialist knowledge makes insuring your business a breeze, and we conduct regular check-ins to match the pace of (and support) your growth.

Even better, our strong focus on environmental, social and governance factors can also open you up to further recognition and rewards.

We don’t just protect your business; we protect your future. Get in touch with us today.

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