When it comes to managing business risk the possibilities are almost as endless as there are risks to your business. Your insurance covers you for the things you do and don’t see coming. When buying insurance it’s always a good idea to work with an insurance broker so you know you’re getting the right products for your business. There are insurance brokers in Perth that may choose to work with a wholesale insurance broker as they can be an excellent choice for small business and grant your agent access to specialized insurance markets.
How Do Retail and Wholesale Insurance Brokers Work?
The short answer is they work together!
If you’ve already got a retail insurance broker they may choose to work with a wholesale insurance broker. You will almost certainly not work directly with a wholesale insurance broker yourself. The wholesale broker gives the retail broker access to rates and markets they wouldn’t normally have access to or may not be familiar with. Your retail insurance broker is the intermediary between you, the purchaser and the wholesale insurance brokers.
What Are The Benefits Of Using A Wholesale Insurance Broker?
Specialization and access are the key points here. The wholesale broker is going to work with parts of the insurance market that a retail broker might not come into contact with day-to-day. Things such as insurance for the handling and transport of specific hazardous chemicals or niche equipment or unconventional locations.
One of the main benefits of wholesale insurance brokers to small business insurance who are looking to give their employees the kind of benefits their bigger competition may be offering. This is, again, due to the wholesale brokers give access to specialty markets and the ability to provide over and above what a general package might contain. Thus if you demonstrate specialty needs to your retail broker they may find ways to get that specific insurance without a needed bulk of a larger comprehensive package.
Are There Challenges When Using A Wholesale Insurance Broker?
The main challenge people are going to find when working with a wholesale broker will be familiar to people who have used wholesalers for other markets. Once you’ve added an extra layer of interaction and specialization you’re going to get added fees. These fees will change depending on the agreements between the wholesale and the retail broker. These fees will inevitably be passed along to the customer in some form or another. If you need the insurance to cover your risks, then these fees are a necessary cost of doing business.
There can also be an added time factor when working with a wholesaler because you’ll be going through several people to get answers to detailed questions. Remember, one of the main reasons that you’re retail broker might be utilizing a wholesale insurance provider is for their expertise in a certain area.
At the end of the day, getting the right insurance for your business is the most important thing and a professional insurance agent will know when and how to work with a wholesale broker to get you the best coverage for your business.