The Role of the Commercial Insurance Broker

Business come in all sizes, and the role of thepublic and products liability, theft and money
Commercial Insurance Broker will vary in someinsurance, goods in transit and perhaps marine
respects with the size of the client company and theinsurance, all-risks covers, fidelity guarantee and
amount of insurance expertise it has available amongpossibly others. The broker may also be asked to
its own staff.provide insurance covers for staff, a group life and
The approach to commercial insurance of a smallpensions scheme, or personal accident or permanent
engineering workshop in a side-street will not be thehealth insurance for example.
same as that of a huge multi-national corporationThe range of insurance which may be needed, and
which may number an insurance company among itsthe variety of problems which may be associated
subsidiaries. The essentials of the broker's task will bewith them, place great demands on the broker with
the same, however, for the largest company as it isan industrial firm as his client, and make it much less
for the individual: to use his knowledge of insurancepossible for him to be a specialist in one or two
and of the insurance market to help his client totypes of insurance only. The individual may be happy
arrange a sound insurance programme which, to theto consult a broker for life or motor insurance only,
maximum extent possible, meets the client's particularbut the industrial company is likely to want a single
needs.source of advice for all its insurance problems.
The Business Insurance Broker will handle theThe larger the client company is, the less it will be
insurances of a small company in a manner veryinterested in buying standardised commercial
similar to those of an individual. The relationship isinsurance covers or packages designed for small
likely to be a personal one wit the directors of thebusiness insurance, and the more it will want policies
business, and they can be considered, in a way, aswhich match its own specific needs. This calls for a
individuals who have a different, and more extended,very deep understanding of the client's business on
set of insurance needs because of their involvementthe part of the broker, matched by creativity in
with the company.designing insurance solutions to the problems posed.
The first essential will be for the insurance broker toThe Commercial Insurance Broker's negotiating skills
ensure that his clients have the compulsorymay also be called upon to persuade an insurer to
commercial insurances which they need for theiraccept what may be an entirely new approach to a
business to be carried on legally.particular insurance need.
Employer's liability cover to protect the workforceThe problems of a small spread of risk may be
must be arranged, and motor insurance is also likelyovercome because the company is large enough to
to be a necessity. If the business has plant orbe rated on its own past record rather than as a
machinery which must have a periodical statutorymember of a trade which is rated as a class in an
inspection, it will be usual to arrange for this to beSME business insurance package. When it reaches this
done by a specialist engineering insurer under thesize, a company may be interested in extensive
terms of an engineering inspection contract, with orself-insurance, and these days it is part of the
without insurance.broker's role to help such clients develop appropriate
Fire insurance will be very important, as willself-insurance plans and to advise on risk
consequential loss insurance to protect the firmmanagement measures to ensure that the risk that is
against loss of earnings during the period following abeing retained is reduced as far as is economically
fire until it is fully back in business. Then there will bepossible.
all the other insurances which a business needs -