Should you use a credit insurance broker?

In today’s world, it’s become the norm for consumers to deal directly with insurance companies - whether they’re shopping around for insurance policies, buying the policy, or making a claim. Given this, it certainly seems that there’s less perceived value in using an insurance broker to get the cover you need.

But what happens when there are complex claims to be made, policy prices suddenly increase or cover is withdrawn unexpectedly? How do you know you’re being treated fairly, and that your claim will be paid out? Do you have the time and know-how to engage with the insurer so you get a fair outcome? Given the complexity of the credit insurance industry, one can see how having a specialised credit insurance broker on your side can make all the difference.

Overall, a credit insurance broker adds value in three main areas:

1. They help you find the right insurance solution

With all the options available, making sure you’re choosing the right credit insurance solution for your needs can be challenging. This is where a broker can help: besides making sure you’re getting quotes from all the best insurance providers, they’ll also make sure you’re getting quotes for the correct product structure to suit your needs.

2. They ensure ongoing compliance to policy terms and conditions

We’ve seen many cases where there is a miles-wide gap between the credit insurance policy the policy holder thought was in place versus what was actually in place. In one instance, a policy holder was under the impression that 100% of their debtor’s book was covered, but when we did our compliance report, we found that only 15% of their book was covered.

3. They ensure claims are paid promptly and as is due in terms of the policy

If you submit a claim directly to an insurer, it can be time consuming and challenging to get paid out promptly. As a credit insurance brokerage, we use compliance reports to ensure that all our clients’ claims are submitted timeously to ensure a prompt payout. We then review the proposed settlement for accuracy and engage with the insurer where there are discrepancies. We also continue to monitor the collections progress to ensure any salvages due to the insured are paid over.

As a business owner, having a reliable credit insurance broker can be a game-changer. They ensure you have the right amount of coverage for your specific needs and make sure you're paid correctly if you ever need to make a claim. Plus, getting the right protection at a fair price can really help your bottom line by lessening the impact of bad debts on your business finances.