Why You Should Use An Insurance Broker for Public Liability Insurance

Depending on which side of the fence you’re sitting, the question ‘Why Should I Use An Insurance Broker?’ always raises plenty of debate. One of the most common misconceptions out there is that using an Insurance Broker means you will pay more for your Public Liability and other policies. Nothing could be further from the truth. While it’s always important to consider your budget, choosing your insurance coverage based purely on cost means there will always be someone out there who is ‘cheaper’ – whether they be another Insurance Broker or a direct insurer.

There’s a few very good reasons why you should choose an Insurance Broker over a direct insurer when seeking out quotes for your Public Liability and other general insurances. These include:

  • Insurance Brokers have access to a wide variety of General Insurers and Underwriting Agencies who specialise in the placement of Public Liability & Business insurance.
  • You’ll receive specialist advice on alternative products available within the marketplace that direct insurers don’t have access to. (Like Errors & Omissions extensions, Contractual Liability coverage and many more.)
  • Insurance Brokers work for you, not the Insurer. When it comes down to the crunch, Insurance Brokers are not acting on behalf of the Insurer and are not protecting the interests of the Insurer.
  • The advice given to you by an Insurance broker is protected by the Professional Indemnity coverage they’re required to hold under their Australian Financial Services License (AFSL). When dealing with a direct Insurer, there is no recourse of action against them for failing to provide you with the correct advice.
  • Your Insurance Broker will handle all your Public Liability claims enquiries and submissions, and ensure that settlements of your claims are correct. In many cases we have seen Insurers decline claims when their policy wording suggests that they had no right to decline. If you are a direct customer with a large Insurer then you will not be receiving any independent advice but simply accepting that the Insurer is correct.

For businesses that have held their policies via direct Insurers such as NRMA, AAMI and the like for many years, it is highly likely that they are not aware of the alternatives including having Insurance clauses of contracts reviewed to ensure that they are not exposing their business to potential uninsured claims. An Insurance Broker can help make you aware of such options and give you advice as to how to improve your coverage.

At AEI, our role as an Insurance Broker is to provide a thorough review of your business activities and to provide a Public Liability Insurance programme tailored to your needs. Whilst you’re under no obligation to take up all of our recommendations, being well advised will allow you to make an informed choice as to how best to protect your business.


You run your business – trust us to protect it. Contact us today to find out how we can help.