Home – New Forums Money matters Public Liability Insurance what to look out for? Reply To: Public Liability Insurance what to look out for?

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bb1, post: 216941, member: 53375 wrote:
That’s putting a lot of faith in one single broker, A bit like going to a landscaper for a few options and quote and assuming he gives you the best because he the is the expert.
That’s living in a world where you believe a broker is truly looking after the customer, and not thinking of his bottom line.

As I said – find one you can work with. I never said put all your eggs in one basket with the first that you come across. It may take some time but just like choosing other professionals it is time I believe well spent. Generally people can see through those that are just trying to ‘sell’ them a policy as opposed to one that sits down, listens to what the client does and how they do it, and works out the most appropriate cover(s) for them. And brokers are duty bound to act in the best interests of their client – its not a fantasy land utopia.. We need to adhere to the Corporations Act, the Insurance Contracts Act, The Insurance Code of Practice, subscribe to the Financial Ombudsman Service – we have a duty by law to act in the best interests of our client.

bb1, post: 216941, member: 53375 wrote:
Brokers use different providers, so different brokers could come up with different costs for exactly the same cover, depending on the options available to them.

Unfortunately there is not a policy on the market which provides EXACTLY the same cover as another – public liability policies different in a number of ways. Even insurers put out different versions of the same policy type for different network groups or target markets. And as for costs, invariably insurer will provide broker A and broker B with the same (similar) premiums when the same underwriting information is provided – certainly not 10/20/30/40% variance as a rule.
As I said in my original post – a broker doing their job properly should be able to come up with a few options (from a number available) and then be able to display to a client why 1 is more appropriate than the others.

bb1, post: 216941, member: 53375 wrote:
At the end of the day isn’t it me as the client who is ultimately responsible for the policy and the broker I select, and as such I should look far and wide, and not assume that the broker is doing the best.

That depends on how you undertake the process – if you pump the information into a brokers quoting system online (which a lot of them have now) and they give you three options, then you are ultimately responsible for the choice you make because they haven’t provided you any advice. If, however, you provide the information to a broker and they recommend a policy which is inadequate (for what you have disclosed), then the broker can be held liable for any loss you sustain due to the failure of the policy.

bb1, post: 216941, member: 53375 wrote:
And by that I am not saying he/she isn’t, just that they can only do the best with the policies / offerings they have available to them.

You will find that for the standard Micro / SME business type risks most (virtually all) brokers have access to all of the mainstream intermediated market: AIG / Allianz / Calliden / CGU / Lumley / QBE / Vero / Zurich are a few that spring to mind. They each have some differences – good thing is that we have access to comparison tools which can highlight a specific cover requirement and see how each insurer treats that cover.

bb1, post: 216941, member: 53375 wrote:
If the broker doesn’t select or offer the best policy for me, and things turn pear shaped (as in a lack of coverage), will that broker cover the short fall. Me don’t think so. Its me who will wear any issues,

I guess it would depend on your definition of ‘the best’ – my definition is that ‘the best’ policy would be the one that which covers your requirements, not necessarily the cheapest.
Furthermore, a broker is bound to act in the bests interests of the client – if there is a coverage issue then that broker can held liable for the clients loss.

Back to the OP issue – the danger in Anna getting quotes from all and sundry and then trying to compare herself is that she effectively becoming her own broker – determining which policy is best for her. That’s the main concern that I see with clients that come to me for assistance – they get quotes everywhere and (unfortunately) some of them are horribly wrong – wrong occupation, wrong activities, wrong intention of cover- big issues for the client. And the common denominator I get from each of them – ‘Yeah what they were telling me just didn’t sound right’.
As I mentioned above – find a broker you can work with / are comfortable with – they are not (like many people seem to think) just there to rip you off.