A New Specialist in Security Insurance
Welcome to our first blog, I am looking forward to being able to use this space to share useful information and my personal insights into matter which are relevant to the Security Industry.
Firstly I wanted to explain why we felt security companies would benefit from having an new independent specialist insurance broker to help them.
Security is a niche area for most insurers and whilst most do not quote for security risks, many tend to only quote via specialist brokers, this means they will not usually quote directly. Perhaps the two most well known specialist brokers are Camberford Law and Sutton Specialist Risks, however there are a few more. When an insurer ties in with a broker in this manner it’s not unusual for them to become a tied agent or at least there will be some requirement for them to support the main insurer wherever possible. They almost certainly will not approach another specialist brokers for quotes.
Many specialist brokers, due to their expertise and access to quantity of business, are given authority to make some underwriting decisions on behalf of insurers and often deal with a network of general insurance brokers who access them similarly to they way they access other insurers. Essentially for many general brokers, the specialist broker replaces the insurer from an underwriting perspective.
With an understanding of the above there are 3 ways which present themselves as options when looking for quotes:
Approaching the specialist brokers directly will give you access to the expertise they can provide, however you could be missing out on a comparison from other specialists. Also this will not usually result in lower commission as these are typically split between specialist broker and general broker. In the absence of a general broker a specialist will have to take over the administrative work the general broker would have carried out for the client.
Approaching a general insurance broker may mean they access a few of the specialists on your behalf, however they may not know of all the specialists, perhaps and often missing out new markets. These tend to be particularly good as new insurers in the early years have to have competitive pricing to get a foothold into the market. After all specialist brokers will not have the same marketing budgets as large insurers which means sometimes news travels slowly, another broker may not discover their existence for a while. It’s also possible that they would not have the same knowledge and expertise as a specialist as they may deal with a range of different businesses and not just security firms.
Approaching Security Insured will give you the specialist knowledge as well as all the benefits of an independent broker, this is our reason for being here. We feel that you can only really know what is going on in an industry by being in contact with it every day. The more clients we are able to look after the better our relationships will be with the specialists brokers which means we can try and negotiate even better deals for our clients.
Questions, comments, we’d love to hear from you, we’ll always do our best to follow up with anyone commenting on any of our blog posts, now and in the future.