The Complete Guide to How Insurance Brokers Provide Value to Business Owners in 2025

A Fireside Chat with Mark Vanzo, Founder and Managing Director of SMART Business Insurance; one of Australia’s Highest Rated Brokerages*

*Over 900 five-star reviews on Google and winner of ProductReview.com.au Business Insurance category in 2023 and 2024

It’s another chilly mid-winter day in Melbourne, when we sit down for a Fireside Chat with Mark Vanzo, Founder and Managing Director of SMART Business Insurance; one of Australia’s Highest Rated Brokerages* about his view on how Insurance Brokers Provide Value to Business Owners in 2025.

What exactly does a business insurance broker do?

Mark Vanzo: Great question. A business insurance broker is someone who acts as an intermediary between business owners and insurance companies.

Importantly, an insurance broker acts for the business owner, not the insurance company. We represent the client’s interests when sourcing suitable cover, renewing cover and at claims time.

Insurance brokers responsibilities include:

• Asking questions about a client’s business activities
• Advising on appropriate coverage options
• Comparing policies from multiple insurers where possible
• Managing claims on business owners behalf
• Reviewing and updating coverage as the business evolves
• Acting as an ongoing insurance adviser, providing year-round support and guidance

This approach enables small business owners to receive suitable insurance coverage that grows with them.

To help business owners understand what an insurance broker does, my team at Smart Business Insurance have prepared a detailed article on the subject: What Does a Business Insurance Broker Do?

Business Insurance Broker vs Insurance Agent vs Direct Insurer

What’s the difference between an insurance broker, an insurance agent, and going direct to an insurance company?

Mark Vanzo: Great question. While the distinction between an insurance broker and a direct insurance company is understood intuitively by many business owners the difference between insurance brokers and insurance agents is more nuanced and often misinterpreted.

The key difference is that while Insurance agents represent the product seller, insurance brokers represent the business owner. This distinction can be crucial at claims time.

I believe it’s so important, knowing who is on your team, and who is on the team of the insurance company, that my team at Smart Business Insurance prepared a comparison of the different options business owners have, check out: The Smart Way for Small Business Owners to Compare Business Insurance Quotes

I’ll provide a brief summary now:

• Insurance Brokers work for the business owner. They represent the client’s interests when sourcing suitable cover, renewing cover and at claims time.
• Insurance Agents represent one or more specific insurance companies. They act for the insurance companies they represent when sourcing suitable cover, renewing cover and at claims time.
• Direct Insurers bypass both insurance agents and insurance brokers, selling policies directly to business owner – often online.

When you go with a direct insurance company online, by its very nature you are “checking off  boxes”. You’re on your own in the process and may have coverage gaps if your business activities don’t neatly fit into the boxes. You will also be managing your claims yourself without any guidance. While this may seem cheaper upfront, it can lead to underinsurance, gaps in cover, more hassle and less success at claims time.

With an insurance agent, they are limited to one or specific insurance companies. And remember the insurance agents act for the insurer, not you, when sourcing cover, renewing cover and at claims time.

Even small misjudgments – like choosing the wrong liability limit – can cost thousands during a claim. That’s why many businesses owners that value suitable cover seek expert support rather than taking the insurance agent or DIY approach.

It’s a really important distinction between insurance agents and insurance brokers. Insurance agents represent the product seller, insurance brokers represent the business owner. This distinction can be crucial at claims time.

What types of commercial insurance are most commonly overlooked by small business owners?

Mark Vanzo: One we see a lot is management liability. While it’s not as tangible as commercial property or public liability, it’s crucial as it can cover directors and management for claims from employee issues such as bullying or wrongful dismissal. OH&S issues can also be covered by management liability .

Cyber insurance is the other big one. Not enough business owners take out this cover. Many still think it won’t happen to them or that they won’t be badly impacted. It’s not just for online businesses and larger businesses. Anyone can be hacked. In 2025 even small businesses are targets. We’ve had clients hit by phishing scams and ransomware who were thankful they had cover.

Can you walk us through how you help business owners find suitable cover for different industries?

Mark Vanzo: Absolutely. Firstly, we listen. We don’t just dive in from a pre-prepared script. Our insurance brokers are briefed to ask open questions and actively listen to learn the full business activities, and what risks the business owner should consider covering.

For example, a café in Melbourne has totally different risks to a painter in Brisbane or an online retailer in Sydney. We ask questions about how the business operates, what assets it relies on, and where it’s exposed. Importantly we want to know the full business activities.

For example, does the café have deep frying or operate a bar, does the painter also do some scaffolding, what products is the online retailer selling, where do they source them, what countries are they selling them into.

Then we discuss the covers the business owner may want to consider. For example: public liability, commercial property, tools cover, cyber, management liability etc. No cookie-cutter solutions here.

Avoid Coverage Gaps

What are some common mistakes business owners  make when buying insurance online?

Mark Vanzo: Many people, business owners included, don’t know what they don’t know, so often focus mainly on price, not coverage. Or they don’t realise what’s excluded. Many small business owners cover themselves for 90% of their business activities, but not the 10% which may be the riskiest and excluded on the policy they take out online. Or they sell into America and Canada and they are not covered on the policy they take out online. It’s easy for business owners to accidentally insure themselves for only part of their business activities or take out policies that don’t even cover their riskiest business activities or jurisdictions. By talking with an insurance broker, you get a chance to discuss your business, so that you are a lot more likely to be covered for all your activities.

What role does SMART Business Insurance play beyond policy renewal?

Mark Vanzo: We don’t disappear after you sign. We are there for you whenever your activities change, you buy or sell new equipment, we ask you to review your activities each year, flag different options, and help guide you when you have a claim. If you buy new equipment or expand to a new location, get in touch and we will make sure your policy reflects that. We’re your year-round business insurance partner.

What trends are you seeing in claims right now?

Mark Vanzo:. Cyber claims have jumped across the board. And with more intense storms and weather events, we’re seeing more commercial property damage claims. Tool theft is on the rise – especially for tradies. These trends really highlight why having suitable cover matters – and having someone in your corner when it’s time to claim.

What’s the best feedback you’ve received from a client after helping with a claim?

Mark Vanzo: Thanks for asking.

We’ve had some awesome feedback, and many happy clients have gone to the effort to express their gratitude online.

Where we have successfully helped clients with claims, and they are happy and let us know, the team really appreciate that acknowledgement from our clients.

Some recent examples are:

The Hidden Value Insurance Brokers Provide to Australian Businesses

How do you assist business owners with Risk Assessment and Coverage Analysis?

Mark Vanzo: At Smart Business Insurance we typically provide clients with general advice.

This means we may provide guidance on risks and policies that businesses in specific industries will typically consider.

For example, a restaurant owner may come to us and be uncertain about the covers they need to run their restaurant with confidence. We may provide guidance that restaurant owners face risks in relation to liability risks such as slip and trip and food poisoning, commercial property, stock and contents, and cyber. We will advise that employee and OH&S risk may be covered by management liability and if they have vehicles, they should consider commercial vehicle insurance.

Another common example is many consultants want to understand if they need covers other than request professional indemnity insurance. We may provide guidance on why public liability insurance and cyber insurance are also important covers for them to consider. If they have a property we will advise that a biz pak may be beneficial.

DIY insurance often leads to claim issues; brokers focus on suitable coverage and no surprises at claim time.

As mentioned earlier we also guide business owners, by helping them consider ALL their business activities, advising them that they need to disclose ALL their activities to be covered, and that they need to be rated by their riskiest activity.

We advise on limits of cover typically taken by similar  businesses of their size.

How do insurance brokers provide Access to Multiple Insurance Companies?

Mark Vanzo: One of the biggest advantages of using a business insurance broker is their access to a broad network of insurers.

In 2025, using the latest tech, Smart Business Insurance brokers, as part of the Steadfast Network, can chat to business owners, and for common occupations obtain quotes from 9 leading insurers.

As an insurance broker, representing the interest of the business owner, we will then check terms, ensure cover is suitable, and then provide a recommendation based on price, cover and, where meaningful, our claims experience with insurers.

At renewal we again approach the panel of 9 insurers, and if a different insurer provides a more favourable price, we will compare terms, and if terms are suitable, provide the business owner with a recommendation on whether to stay with the incumbent insurer or move across to a new insurer. This keeps the current insurer honest and ensures the cover remains suitable. It’s a big difference compared to going direct with an insurer .

Our insurance brokers consider suitability of cover, price and claims experience.

In certain industries and occupations there may only be one or a handful insurers or underwriters that play in their space. Our insurance brokers can locate and negotiate with niche underwriters on behalf of the business owner.

Business owners don’t have to spend hours searching multiple sites; our insurance brokers do the legwork.

AI enhancements in 2025 have made this comparison process even faster and more accurate, helping our team of insurance brokers focus more on providing guidance rather than administration tasks.

How do insurance brokers provide access to suitable insurers for more complex, niche or nuanced occupations?

Mark Vanzo: I’m glad you asked.

Business insurance brokers really come into their own for businesses in more complex, niche or nuanced industries.

For example, at SMART Business Insurance while all brokers are familiar with the common occupations, such as cafes, restaurants, trades, commercial property, individual team members also have their own industry specialisations.

We have brokers who are specialists in life sciences, SAAP, marketing agencies, software developers, NDIS, hard to place commercial property, construction. As a result they are aware of the insurers, or more than likely, underwriters who specialise in their risks and provide suitable cover at an affordable price.

How do insurance brokers help business owners with Policy Reviews and Updates?

Mark Vanzo: I appreciate you asking.

Many businesses evolve over time.

A small business insurance broker is here to help you when things change in your business to ensure your commercial insurance policies remain relevant and will respond if you need to make a claim.

If you’re expanding, upgrading, or just making changes, we’re on hand to make sure your policy keeps up.

We are to help…just get in touch.

We stay close; checking in pre-renewal, asking whether your activities or assets have changed, and where relevant, we may suggest new coverage options.

At Smart Business Insurance our team is 100% dedicated to business owners, so that you can run your business with confidence.

Can business owners benefit from insurance broker Negotiating Power and Cost Savings

Mark Vanzo: Great question.

Of course.

At Smart Business Insurance we helped over 4500 businesses with their insurance coverage over the last 12 months.

Over the last 13 years our own team of insurance brokers have established relationships with insurers, and as a result, often have negotiating leverage.

They can secure affordable premiums and suitable terms.

Over time, this can result in significant savings, especially for growing Australian businesses.

Our insurance brokers also bundle multiple policy types reducing administration and cost.

Examples are: public liability and products liability, commercial property, contents, stock, equipment, glass, machinery breakdown  business interruption can all be bundled into a Biz Pak for many small businesses.

Professional indemnity and public liability can also be bundled together for many consultants.

Our licensee, United Insurance Group, handles over $150 million in policies annually.

And, as we are as part of Steadfast, with over $13 billion in policies placed annually, we benefit from the combined buying power of the group as well as access to technology and training resources which assist us to provide business owners with appropriate cover.

How Business Insurance Brokers Save Melbourne Companies Time and Money

How do insurance brokers help business owners with Claims?

Mark Vanzo: Handling claims can be a stressful and time-consuming task.

This is especially the case for business owners that are not familiar with process, and/or would prefer to spend their time running their business.

Our business insurance brokers, located in our Melbourne office, help business owners Australia wide including NSW and QLD on a daily basis, by providing hands-on support throughout the process, from lodging the claim to resolution.

Our team’s advocacy for the clients we represent can help obtain fairer outcomes for our clients and reduce delays.

We help business owners with their claims by:

• Providing Responsive claims handling.
• Advising business owners on what information they will  need to provide the insurer with.
• Representing the business owners interest with the insurer to maximise their claim.
• Interpreting policy wording for the business owner as needed
• Challenging insurers to view business claims fairly.
• Expediting the claims process.

I do need to stress that Smart Business Insurance has no power to authorise claims.

However, our experience and assistance can help business owners when they have a claim.

As an insurance broker do you have any tips for business owners on how they can minimise their risk at claim time?

Mark Vanzo: Sure do.

Tips for business owners to minimise their risks at claim time are:

• Take whatever action possible to minimise damage.
• In the case of theft, burglary, and malicious damage, notify the police.
• In the case of liability, do not admit liability (your insurer will).
• Report any claims promptly.
• When in doubt, consult with us. We’re here to help you.

We have more tips, helpful information, emergency contact numbers and claims forms on our Smart Claims service page.

Choosing a suitable Business Insurance Broker for Your Company

What are some Key Questions to Ask Potential Insurance Brokers?

 Mark Vanzo: First of all, I recommend checking out the insurance brokers reviews online.

Look at the insurance brokers 5 STAR rating, and how many reviews they have. Check out how they perform with claims, and what clients that have been with them for a number of years say. Compare the ratio of poor reviews vs good reviews, and see if you feel what is implied by the poor reviews could have an impact on you.

Once you have done that, and narrowed it down to three brokers…if you have done that thoroughly…the insurance brokers you have shortlisted should all be good brokers…now you need to make sure they are a fit with your business activities and your size.

So the first question I would ask after describing your business is:

• Can you provide examples of how you’ve helped businesses like mine?

Next I would ask:

• If I had a claim for x event how would you handle that?

I would also ask the following before selecting a broker:

• Who will be handling my account ongoing?
• How many insurers do you work with that deal with my business activities?
• How do you handle renewals each year? Do you actively remarket each year?

Transparency in these areas reveals whether the broker is a good fit for your business.

What are some Red Flags to Avoid When Selecting an Insurance Broker?

 Mark Vanzo: Firstly not all online reviews are equal. While some platforms, like Feefo and Trustpilot, allow for mediation if you pay a fee, Google doesn’t .

So Google reviews reflect service offered prior to any mediation…all companies are on a level playing field with Google reviews.

As a business owner myself prior to starting Smart Business Insurance 13 years I would avoid brokers who:

• Are really agents, and therefore act for the insurer rather than the business owner, when placing products and at claim time.
• Push one insurer or several without offering alternatives, if there are many alternatives for that occupation.
• Use overly technical language to confuse.
• Lack experience in your business activities.
• Can’t explain policy exclusions clearly.
• Don’t give you time to review policy wording and ask questions before committing.

Your business insurance brokerage should be a strategic partner, not just a policy pusher.

Frequently Asked Questions (FAQs)

Q: What does a business insurance broker do?

Mark Vanzo: They ask questions, answer your questions, learn your business activities, source policies from multiple insurers where possible, provide coverage guidance and recommendations, offer ongoing support during the year, represent your interests at claims time, check if cover is still suitable at renewal time, and remarket your insurance policies as appropriate. See more here: What Does a Business Insurance Broker Do?

Q: How much does a business insurance broker cost?

Mark Vanzo: Insurance brokers typically receive a commission from the insurer and charge a broker fee.

Their guidance may avoid issues at claim time, saving stress, hassle and money.

Having suitable coverage can also allow you to run your business with confidence.

Q: How do I find a good business insurance broker near me?

Mark Vanzo: Wherever you are in Australia, including VIC, NSW and QLD, search for “insurance brokers near me“ and check out their reviews, relevant experience, and accreditation.

For Melbourne-based services, search for “insurance broker Melbourne”.

Ask for examples of how they’ve delivered for businesses similar to yours.

Q: Do I need a business insurance broker for my small business?

Mark Vanzo: If you care about being covered properly, rather than just ticking a box, yes.

A small business insurance broker will ask you questions to understand your full business activities.

They can also answer your questions.

They are there to help you and provide you with guidance, not to sell a product.

Q: Why Choose a Professional Business Insurance Broker?

Mark Vanzo: Allow me to answer that question with another question.

Why choose a professional accountant, lawyer and IT provider?

Working with a professional insurance broker can mean gaining an additional strategic partner who can help you safeguard your business.

Consider an insurance broker part of your extended team; including your accountant, lawyer and IT provider. The right team can be invaluable in helping you meet your business objectives, and overcoming challenges when they come up.

A good insurance broker can help you navigate risk, optimise your cover, and access insurers you might not otherwise reach.

In 2025, while tech is an enabler, it’s the insurance broker’s experience combined with the use of technology that may transform the outcome.

Insurance Brokers bring insight into trends affecting Australian businesses, such as rising cyber threats, inflation-driven policy costs, and increasing legal liabilities. With a broker, you’re never navigating these risks alone.

Whether you’re running a family business, launching a startup, or managing an established firm, the value of an experienced commercial insurance broker cannot be overstated.

For guidance from a business insurance specialist, speak with a member of our team.

Ready to Protect Your Business?

Get A Quote now and see how a trusted insurance broker for business can make a difference.

To compare your options with confidence, visit our in-depth guide: The Smart Way to Compare Business Insurance Quotes