Most small public liability risks are written online without a person involved, and for a straightforward trade that is the right answer. Brokers earn their place at the point where a business stops fitting the questions an online form knows how to ask.
What a broker actually does
A broker is an intermediary who places your risk with an insurer. The useful part is not access to secret prices; it is the presentation of the risk. A broker writes the description of your activities, decides which insurers will look at it, argues about which exclusions apply, and handles the claim when the insurer and the business disagree. For a risk that fits a standard trade code none of that is worth much. For one that does not, it is the difference between cover and a refusal.
When the online route stops working
Online quotes work by matching a business to a trade code. They stop working when the business does several things at once, when an activity is unusual, when there is a claims history to explain, when a contract requires wording changes, when work happens abroad, or when the required limit is higher than the panel will write. In each of those cases the form either refuses or, more dangerously, accepts a description that does not match what the business does.
How brokers are paid, and why to ask
Brokers are usually paid commission by the insurer out of the premium, sometimes a fee charged to the client, and sometimes both. The arrangement should be disclosed and can be asked about directly. It is worth asking because it explains why a broker might place business with one insurer over another, and because a fee based arrangement can be better value on a larger account than a commission rate applied to a growing premium.
Checking who you are dealing with
Insurance broking is a regulated activity in the UK, and firms carrying it out are authorised and appear on the public register maintained by the regulator, along with the permissions they hold. Checking the register takes a minute, confirms the firm exists and is permitted to arrange the cover, and distinguishes a broker from an introducer who passes your details on. That distinction matters because only one of the two is advising you.
Questions people ask about public liability insurance broker
Is a broker more expensive than buying direct?
Not necessarily. Brokers are usually paid commission from the premium rather than a markup on it, though some charge a fee, which should be disclosed.
When do I actually need a broker for public liability?
When the business does several unusual things, has a claims history, needs contract specific wording, works abroad, or needs a limit an online panel will not write.
How do I check a broker is legitimate?
Look the firm up on the regulator's public register, which shows whether it is authorised and which permissions it holds.