Some things in life are free

Some people will say that nothing in life is free. Others will say that if something is free, then there must be a "hidden cost". When we are talking about a free physical product, this can sometimes be the case. For example, if you go on the net to one of the many sites that offer free samples, in exchange for your name, address, email and telephone number, the quid pro quo is that you will be bombarded with phone calls, junk mail and emails for months to come.



When we are talking financial services, you can get these for free. Business insurance UK is a financial service. You do not buy a physical product, what you are doing is exchanging an amount of money, your annual premium, for financial peace of mind that, in the event of a loss, you receive recompense for this loss.



Part of this financial service is obtaining a quotation in the first place. Any business or commercial insurance policy you take out starts with receiving a quotation. In the UK, since January 2005, all companies that offer, either as an intermediary or direct, insurance products need to be allowed to trade. What this means is that the Financial Services Authority confirm that a business is "authorised and regulated" and they are part of the FSA register of businesses allowed to operate in this area.



As part of this authorisation, we must abide by certain rules and ways in which we operate. One of these is, that we will provide, as soon as reasonably practical, a full written quotation, with our terms of business and a separate document summarising the insurance cover, for the quote provided.



Therefore, to actually get a quote involves some work on behalf of the business insurance broker. A quote must be based on your "demands and needs". This means that we must assess your insurance requirements and offer you a suitable product or products. We have to record the information that you provide, then decide which underwriters to approach to get you a quote and then, sift through the quotes received and confirm the most suitable one to you.



In reality, for 90% of cases, we can now do this online and very quickly. Most of the forward thinking insurers do have very good websites that we are allowed to access, to enable us to give you what you want. A quick quote that provides the cover you need.



For more complex cases, for example manufacturers, importers, wholesalers or engineers, we may need to make a separate presentation to underwriters to get a commercial combined insurance quote. This is a process that takes time. We need to consider which insurers to approach. Different companies will have different appetites for business. As we all know, one man's drink is another mans poison, it is the same with the insurers. Some may shy away from large unoccupied buildings, whereas others are more than happy to take this risk.



All this work is free; the broker will receive a commission, or will add a fee to any insurance quotation. This is where they earn their money, if they get to place your insurance business.




Jack Brown is a professional writer who writes on various finance and insurance related topics. For more information on commercial insurance he suggests you to visit http://www.businessinsure.co.uk