What Does an Insurance Broker Do and Should You Use One?

When you're searching for insurance, whether for your home, car, business, or health, it can be hard to know where to begin. There are so many choices, from different insurance companies to all sorts of cover options, that it often becomes confusing.

Insurance is important because it helps protect you, your family, or your business from unexpected problems. However, finding the right policy takes time and a good understanding of what each policy offers. This is where an insurance broker comes in.

An insurance broker is someone who helps you find the most suitable insurance. They do the hard work of comparing different policies and explaining what they mean in simple terms. They act on your behalf and aim to get you the best cover for your needs, often saving you money too.

In this article, we'll explain what an insurance broker does, how they differ from insurers and comparison sites, the types of brokers available, and whether using one is the right choice for you.

What an Insurance Broker Actually Does

Insurance brokers work with clients to understand their needs and then help them find the best policy from a range of insurance companies. They don’t just sell one company's products – they can offer you choices that are better suited to your needs.

This section explains some of the key tasks a broker carries out in more detail.

They Assess Your Needs

The first step a broker takes is to talk with you about your situation. They ask questions to find out what kind of insurance you need and how much cover would be right. For example, if you're insuring your home, they’ll want to know the value of the building and its contents.

They’ll also consider things like your budget, any past claims history, and if you have special requirements. This helps them understand what risks you face and what sort of policy would give you the best protection. For instance, a family with young children might need different health insurance cover than an older couple.

They Compare Policies for You

Once they know what you need, a broker looks at different insurance policies from a range of providers. They don’t just compare prices – they check what’s included, what’s excluded, and how claims are handled. They also explain complex terms so that you’re not left guessing.

Because brokers work with several insurers, they often have access to deals the public can’t get directly. They may even be able to negotiate better terms or premiums, especially if you’ve had insurance for years without claiming.

They Offer Ongoing Support

Insurance brokers don’t stop helping you once you’ve chosen a policy. They often stay involved to make sure your cover stays suitable over time. This could mean reviewing your policy each year or helping you renew it if your situation changes.

If you need to make a claim, many brokers will guide you through the process. They can help with paperwork and speak to the insurer on your behalf, reducing stress at difficult times. Some even offer claim management as part of their service.

How Brokers Differ from Insurers and Comparison Sites

It’s easy to confuse an insurance broker with a direct insurer or a comparison site, but there are key differences between them. Each offers a different kind of service, and understanding this can help you make the right choice.

Insurers sell their own policies directly. When you buy from them, you only see what that company offers. You won’t know if there’s a better option elsewhere unless you shop around yourself.

Comparison websites let you see prices from many insurers. They are quick to use and often show the cheapest deals first. But they focus on price rather than advice. You don’t get help understanding the details or what cover you might actually need. Many important parts of the policy can be hidden in the small print.

An insurance broker works for you, not the insurer. They help you understand your options, find the most suitable policy, and explain everything in clear terms. They also help if anything changes or if you need to make a claim later.

Types of Insurance Brokers and Who They Help

Insurance brokers come in different types. Some offer general services, while others focus on certain groups or areas of cover. Picking the right type can make a big difference.

Personal insurance brokers help individuals and families. They deal with home, car, life, health, and travel insurance. These brokers make sure your day-to-day needs are covered, and you’re not paying too much. If you’re buying a house, for example, they can help with buildings and contents insurance in one package.

Business insurance brokers work with companies. They arrange policies such as public liability, professional indemnity, and cover for tools, stock, and employees. These brokers help businesses manage risks, protect assets, and stay legally compliant. A shop owner or builder, for example, will benefit from advice about what types of cover are essential.

Specialist brokers deal with specific needs. For example, they may cover high-value items, unusual property, or one-off events like festivals or exhibitions. They’re a good choice when your insurance needs are not typical or when you want very tailored protection.

Some brokers also focus on certain jobs or sectors, such as medical, legal, or creative fields. They understand the risks in these areas and help you get the right protection. For instance, a freelance designer may need professional liability insurance even if they work from home.

Should You Use an Insurance Broker? Pros and Considerations

Now that you know what an insurance broker does, it’s time to think about whether using one is right for you. This depends on what kind of cover you need, how much time you have, and how confident you feel choosing a policy alone.

The Benefits of Using a Broker

One of the biggest benefits of using a broker is their advice. If you’re not sure what type of insurance you need or want help understanding policies, a broker is a useful guide. They explain things in plain language so you’re not confused by legal terms.

Brokers save time by doing the research for you. Instead of checking different insurers yourself, they’ll compare the options and highlight the best choices. This is helpful if you’re short on time or don’t want to deal with the details.

They also help with claims, which can be a real relief. A broker can make sure your claim is handled properly and quickly so you’re not left waiting or confused. This support can be especially important during difficult times, such as after an accident, theft or illness.

Points to Check Before You Choose a Broker

While brokers offer many benefits, there are a few things to look into before choosing one. Some charge a fee, while others get a commission from the insurer. Always ask how they’re paid so you know what to expect. Make sure this is clearly explained from the start.

Also, ask whether they offer access to a wide range of insurers. Some brokers only work with a few companies, which might limit your options. A good broker should be clear about this and be willing to explain why they recommend certain products.

Make sure your broker is properly regulated. In the UK, brokers should be authorised by the Financial Conduct Authority (FCA). This means they meet certain standards and you’re better protected as a customer if anything goes wrong.

When You Might Not Need a Broker

If your insurance needs are simple – such as basic car or travel insurance – you might not need a broker. Comparison websites can still be useful if you read the details carefully and understand what you’re buying.

However, even in these cases, a broker can help avoid gaps in cover. They make sure you’re getting the right protection, not just the cheapest price. If you’re unsure, having someone explain your policy can be worth it.