Commercial Insurance Brokers – A Definition

In recent years, much has been made of how important a role commercial insurance brokers play in the modern-day insurance panorama. Quite apart from mere salesmen, these professionals are seen almost as partners in each of their clients’ purchasing journey, helping and guiding them along the way whilst at the same time providing the tools necessary to ensure they come out as thoroughly protected as possible at the other end.

Yet, for all that the importance of their role is recognised by all and sundry, the perception of what commercial insurance brokers actually do remains, for most uninitiated neophytes, sadly muddled. Other than the extremely general concepts detailed in the paragraph above, many if not most of the men and women seeking to purchase a policy of this type will probably not be able to explain or pinpoint precisely what the role of these professionals is in the grand scheme of things. It is that question that this article seeks to address and clarify, by offering a brief overview of what is generally meant by ‘commercial insurance’ and detailing some of the tasks commercial insurance brokers are responsible for in the course of their professional duties.

Commercial Insurance: A Definition

Before attempting to list the professional responsibilities of commercial insurance brokers, it is important first and foremost to define precisely what is meant by the term itself.

The term ‘commercial insurance’ generally refers to insurance meant to protect and cover businesses, commercial endeavours and manufacturing plants. These policies are generally underwritten in a way which protects business assets, such as buildings and equipment, while also giving the business owners the highest possible degree of cover. Typical clauses on a commercial insurance policy may account for property damages, financial loss or workers’ compensation.

The Role of Commercial Insurance Brokers

Having defined what the term ‘commercial insurance’ usually designates, this article can now go on to define exactly what is encompassed in the professional competencies of commercial insurance brokers.

In essence, commercial insurance brokers act as the link or contact point between consumers looking to purchase a policy and the insurers themselves. Like all brokers, these professionals tend to have links to a vast number of insurers, allowing them to pinpoint which of the plans offered by the different companies is best suited to that particular client’s needs and requirements. Once the ideal plan has been selected, it is then up to commercial insurance brokers to contact the insurer directly, on behalf of the client, and set up the terms of the policy and the underwriting.

In addition to this principal role, modern-day commercial insurance brokers are also called upon to fulfil the didactic role described earlier in this article. The combination of their expertise and the lack of knowledge of the insurance field the average customer tends to have combine to make these professionals a sort of tutor, teacher or guide for their clients, helping them figure out the different steps involved with the process of purchasing commercial insurance.

It is easy to see, then, how the exact role of commercial insurance brokers might appear unclear to those less versed in this particular field. It should be equally as clear, however, that these professionals’ contributions to the profession as a whole are nothing short of essential, and that they play a key role in ensuring the process of purchasing commercial insurance is smooth and stress-free for even the most neophyte of customers. As the process of setting up a business continues to become more and more accessible, it is only to be expected that the role these professionals play within western society as a whole grows in direct proportion.