A step-by-step guide to working with a business insurance broker

From understanding premiums to sums insured, getting your business properly covered doesn't have to feel like overwhelming jargon. And working with a reputable business insurance broker can make the process easier. 

The key is knowing what to do: from researching what a broker can offer to dealing with one so you can feel more prepared. 

Here's what you need to know about working with a commercial broker, including how to find one that’s right for your business, how they can help deal with renewals and claims, and more.

Five-point summary:

1. Benefits of using a broker – Many brokers compare quotes, explain cover options, and negotiate with insurers on your behalf. All must be FCA‑regulated.
2. Choosing a broker – Check the FCA Register and ask about fees, insurers they work with, and claims support. 
3. Information you need – Share your details with your broker on activities, turnover, staff, premises, and any unusual risks to help get proper cover.
4. Quotes  – Brokers can search the market to find suitable quote options. They can help explain what's included and any exclusions to be aware of.
5. Renewals –  At renewal, many brokers recheck the market for quotes. Brokers like bionic, can also arrange other essentials for you, such as energy, broadband, and finance.

What is a business insurance broker, and why use one? 

A business insurance broker deals in the commercial insurance market, finding quotes for businesses on your behalf. 

Unlike going directly to an insurer, a broker usually searches multiple providers to find cover that fits your specific needs and budget.  

Learn more about the differences between a business insurance broker vs going directly to an insurer. 

Brokers handle the legwork of comparing policies, explaining complex terms, and negotiating on your behalf. They're particularly valuable if your business has unusual risks, previous claims, or if you're struggling to understand what cover you actually need. 

All legitimate UK business insurance brokers must be authorised by the Financial Conduct Authority (FCA). You can check a broker's credentials on the FCA Register before you use one. At Bionic, we are registered with the FCA. 

How do I find and choose the right business insurance broker? 

Start by checking the FCA Register to verify any broker you're considering is regulated. Although the minority, there are some brokers out there who may not be transparent and hit you with unexpected fees or leave you without adequate cover  

All legitimate brokers are regulated by the FCA. This helps protect you as they must adhere to guidelines like treating customers fairly and not misleading. 

Then, look at your own business and find a broker who can help insure your type of business.  For example, large corporations may want to opt for a global broker while a high street business may want someone who specialises in cover for small businesses. 

At Bionic, we know UK small businesses, from shops and salons to takeaways, hotels and car mechanics, we can help arrange cover that’s right for you. 

Questions to ask before choosing a broker 

If you’ve never spoken to a broker, you might be wondering what to ask. Depending on who you contact,  you might be able to speak to someone online or on the phone who can help iron out any questions. 

Consider asking: 

• How do you charge – commission from insurers, fees, or both? 
• Which insurers do you work with? 
• What experience do you have with businesses like mine? 
• Will I have a dedicated contact person? 
• What support do you offer during claims? 

UK law requires brokers to disclose their commission on commercial policies if you ask.  So don't be shy about having this conversation upfront, if you’re concerned, they should be transparent.  

Tara Mitchell, Insurance Technical Manager at Bionic - “When you speak to our UK-based insurance team at Bionic, they’ll talk you through your options. You’ll also have the chance to ask any questions, so you can feel confident in any decision you make”

What information does a broker need from my business? 

Brokers need accurate business information to get you the right quotes. So, it's a good idea to do a little bit of prep before you speak to someone. Make sure you have these details handy: 

• Your business description and all activities  
• Annual turnover and number of employees 
• Business premises details (owned, leased, square footage, roof materials) 
• Any previous insurance claims (last 5 years typically) 
• Current cover details if you're switching 
• Any unusual risks, circumstances or activities (like microblading in a salon) 

Always try to have your turnover, payroll, latest accounts and previous insurance documents to hand, as this can help speed up the process, especially if you’re busy.  

Remember, it's your duty to make sure the information you provide is accurate. If not, you could be left without adequate cover. 

What happens if my business has unusual risks? 

An unusual risk can be anything that isn’t the norm in your business, that may not be covered in a standard policy. For example, this could be:  

• Working from home part-time 
• Storing hazardous materials 
• Working from a height  
• Abrasive beauty treatments (like permanent tattooing) 
• Running a hybrid business (for example, a garden centre) 

You must tell brokers about any of these activities, as they come with a new set of risks. Brokers often deal with unusual situations every day, so it’s likely they can arrange any specialist cover you might need. 

How does the quote process work with a broker? 

Whether you have shared your details online or on the phone, a broker will search their panel – this can take as little as a few minutes. 

Depending on your business, a broker will approach multiple insurers on your behalf to find quote options. They know which insurers work with certain industries and to get competitive quotes to present back to you. 

Understanding and comparing broker recommendations 

Your broker will provide your options on the phone and/or via email. Depending on your business, you might have 3-5 options, but you may just have one specialist provider. When considering which one to go for, important not to just look at price, you should compare: 

• What's covered and what's excluded 
• Policy limits and excesses 
• Any add-ons that are included or that you may need 
• The reputation of each insurer when it comes to claims 

You can always ask your broker to explain any terms you don't understand. For example, “premium” and "material damage" might sound straightforward on paper, but don't hesitate to ask for explanations if you aren’t really sure.  

It’s also worth checking out our insurance jargon buster. 

What should I check before accepting a policy? 

Before you say yes to any policy, verify: 

• You’ve correctly described your business activities 
• You’re happy with the amount of cover 
• Your business address and employee count are right 
• You understand the terms and conditions, and what is and isn’t included  

You can also ask your broker to walk you through the exclusions section of your policy. This tells you what's not covered, which often matters as much as what is covered. 

Making changes to your policy 

If you get off the phone with your broker, read your policy again, and something doesn't look right, tell your broker straight away. A broker can help put it right, before the policy starts. Making alterations after your policy starts may cost extra or require the broker to speak to the insurer for approval. If you change any part of your policy, this may increase or decrease your premium. 

Commercial policies don’t include a 14-day cooling-off period, so you can’t cancel for a full refund if you change your mind. This differs from most home insurance policies and is worth keeping in mind. 

How much do brokers charge, and how are they paid? 

Most brokers earn money in 3 main ways: 

1. Commission from insurers – Typically agreed with each insurer 
2. Fees  – An admin or service fee that may be in addition to your premium cost 
3. A combination of both 

It’s worth remembering that a broker's payment often comes from the insurer, so this doesn’t mean your premium is higher and using a broker doesn’t necessarily mean you are paying more compared to buying direct. Brokers are often able to negotiate good rates with insurers because they bring them business. 

What happens when it’s time to renew? 

About 30 days before your policy ends, your broker will contact you about renewal.  

Many brokers don't just accept the renewal quote from your current insurer. They'll check their panel again to see what other quotes are on offer, especially if your premium has increased significantly.  

This is exactly what we do at Bionic. 

Tara Mitchell, Insurance Technical Manager at Bionic, confirms:  “When renewing with Bionic, we carry out a fresh search of our panel to find the best quotes available to you. You can then decide to switch or stay with your current insurer, depending on your preference.” 

Read up on renewing your business insurance. 

Preparing for renewal 

If you’re approaching your renewal window (up to 30 days before your policy ends). You should update your broker on any business changes: 

• Changes in turnover or employee numbers 
• New business activities or locations 
• Claims made during the year 
• Any  changes to your sums insured 

Doing this ensures your cover still protects your business, and you aren’t left uninsured. 

When to switch insurers 

If your premium rises without an obvious reason, you can always ask your broker why.  

Sometimes switching insurers at renewal can save money, but it’s not always a good idea to switch purely on price.  

Consider checking eviews for insurers before you switch to a new one.  And if you’re happy with your current insurer and the annual premium increase isn't too bad, there is no harm in staying. Often, your broker can deal with the renewal for you. 

How does a broker help with claims? 

This really varies, depending on your broker. If you need to claim or have a claim made against you, some insurers will pass you directly over to your insurer. Others will deal with the process.  

At Bionic, we don’t deal directly with claims, but we can give you any policy details you need and a contact number for your insurer. 

Read our step by step guide to claims. 

What you need to do when making a claim 

Contact your broker or insurer as soon as possible after an incident. They'll tell you exactly what to do next, but generally you'll need: 

• Photos and evidence of damage 
• Police or incident reports where relevant 
• Several repair quotes or invoices 
• Records of business interruption losses 

Remember to keep all receipts and correspondence, you'll need to provide the facts and evidence yourself. 

Common mistakes when working with a broker 

Avoid these pitfalls when working with a broker: 

1. Withholding information – If your broker doesn't know about a risk, they can't get you covered for it. 
2. Choosing on price alone – The cheapest policy might not be the best, and leave you exposed when you claim. 
3. Forgetting to update them – Tell your broker when your business changes. If this is not reflected in your policy, you won’t be covered. 
4. Missing renewal deadlines – If your policy ends before you start a new one, you're uninsured. This can leave you liable for claims. Consider auto-renewals to prevent this. 
5. Not reading policy documents – We know no one likes reading the small print, but it’s a legal contract. Check the details match what you discussed. 

Can I arrange other business services with a broker? 

Some brokers can sort more than just business insurance. You might find you can arrange other utilities in a ‘one-stop shop’.. This could include:  

• Business energy contract switching 
• Business VoIP and broadband comparisons 
• Business loans and commercial mortgages 

Sorting any of these, in addition to your insurance, can help save you the hassle of dealing with multiple brokers or suppliers, saving you time (and even money). 

Ask what your broker offers if you're ever interested. 

At Bionic, we can help you sort all the above. From finding your next energy deal, to sorting an upgraded broadband and VoIP system or arranging a commercial loan or mortgage. Get in touch today to find out more. 

Or read up on what else brokers like Bionic can offer you beyond insurance.  

Building a long-term relationship with your broker 

As with any relationship, a good business and broker relationship is built over time. When you use the same broker and even speak to the same person, you build that trust. Your broker learns your business, anticipates your needs, and can become a trusted ‘go-to’. 

So, when your business changes, it’s a good idea to stay in regular contact with your broker to keep them updated, and this doesn’t just have to be at renewal. Always inform your broker about business changes, any expansions, or concerns you have about your cover. 

If your broker isn't meeting your expectations, speak to them about it to see if it can be resolved. If you still have issues, remember, you can always switch brokers. 

Getting started with a broker 

Ready to begin? Start by verifying potential brokers on the FCA Register, once you’ve chosen one, gather all your business information, write down any questions you have and get in contact. 

Compare business insurance quotes with Bionic today and start a quote online. Our UK-based, friendly brokers will be on-hand to talk you through your options and help arrange cover for you, with no hassle. 

Start a quote online now.