Every single UK business insurance broker is under an obligation to treat their customers fairly. We simply cannot recommend product A when we have product B and C available which are more suited. This stands to reason and to many is quite obvious.
It is easy though when the distinction between products is easy. For example, if I offered an office insurance quote with company A at £500, with a £1,000 excess for damage to contents, but also had a quote from company B for £525 with a £250 excess then company B is the one we quote. It is easy for us to see what the differences are. We also know which companies have better reputations for paying claims as well. We cannot say to a customer that company A is notorious for paying claims because we will face a libel or slander claim. It is up to us to decide who we offer.
Although it is easy for us to see the differences, it is not always so easy for the customer. We have spent years advocating the need for quick, easy, competitive quotes, but on a wide cover basis. It is what we do and we do it very, very well. However, over recent years there has been a growth in online business insurance comparison websites. These sites sell on price, price, price. Nothing more and nothing less. When we quote a customer, for example, £3,000 for their annual premium after having undertaken a fair comparison of the market and a fact find for their business, they sometimes get an alternative.
We send a quote and then get an email back saying, I have had a quote for £2,500, what can you do? What we can do is to ask for a copy of the quote. We are not in the market to just undercut everyone else. We know the ballpark and we always quote near the bottom price range, but making sure that cover is sufficient. If the customer sends us the alternative you can get your bottom dollar that there is a reason it is £500 cheaper.
It can be difficult for the customer though to fork out £500 every year for wider cover. These websites tempt them into buying and then, when there is a loss the customer does not have a leg to stand on.
So what are we saying? The old adage applies, if it is too good to be true (the price) then there is a reason for it. Take your time and get an independent business insurance broker to review any quotes you have had.