Travel agents and stockbrokers were once the go-to people for advice and the only channels available for their respective services. They were lucrative businesses. Their owners benefitted by keeping things complicated and mysterious, while charging high fees and commission. Then the internet came along and now we book our own holidays and buy our own shares online.
A recent survey amongst small business owners in Australia , where small business insurance can be bought online, showed that the traditional insurance broker channel is declining in use (from 40% in 2013 down to 31% in 2016). In the same four years, online has increased from 20% to 27%. It is now the second most popular channel and is set to overtake traditional insurance brokers in the coming few years.
So, why buy insurance online?
1. Ever Try Buying Business Insurance on the Weekend or in the Evening?
Very few traditional insurance brokers and insurance companies operate on weekends or after 5pm on weekdays. But that’s the time when most small business owners catch up on paperwork. The internet is available all day and every day for small business owners to get quotes and buy insurance when and where it suits them.
2. Who Can I Turn to For Insurance Advice?
When arranging small business insurance, most traditional insurance brokers are acting as agents for insurance companies rather than as an agent for you. This can bring conflicts of interest into the relationship when seeking advice on what’s best for your business. A recent survey by Vero in Australia showed that small business owners turned to insurance brokers for advice in only 18% of cases. When you buy online, you can still turn to your trusted advisers, such as accountants and business associations, for risk advice. Then you can make up your own mind.
3. Who Likes Filling in Forms?
Most traditional insurance brokers will provide two or more forms to fill in – one for material damage cover and another for liability insurance. That requires small business owners to tell them who you are multiple times. Who wants to waste their time doing that? When buying business insurance online, you are only asked once and in plain English. Fewer questions means a smarter process.
4. Would You Like to Buy Business Insurance in Minutes?
Buying insurance the traditional way is slow, very slow. It can takes days at a minimum and often stretches out to a week to get an insurance quote. Add more time to buy, pay and receive confirmation of cover and you’re looking at weeks. Buying business insurance online is fast. Within minutes you can get a quote and pay from your bank account, credit card and debit card. You’ll receive your insurance confirmation, by email, straight away.
5. How Do I Save Money on Business Insurance?
Cutting out the traditional middleman who only contacts you at renewal time has got to bring savings. If your traditional insurance broker is not providing tailored advice and reviewing your business insurance needs annually, you might as well take control yourself. Going online to buy business insurance empowers you to make your decisions, cutting out the insurance extras you don’t need. Tailored business insurance, lower fees and less commission means more savings for you.
Given the above benefits, it’s clear why insuring your business online is smart, trusted and increasing in popularity.
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