Major broker Arthur J. Gallagher (AJG) has warned garage workshop owners against the potential pitfalls of using aggregator websites to source their insurance cover online.
In a recent seminar at the National Exhibition Centre in Birmingham, AJG managing director Leon Bosch discussed how the rise of price comparison sites and insurance aggregators over the past few years may be driving a mindset of premium over policy, which is now transferring into the commercial market.
According to AJG, the flexibility that these sites give to businesses enables them to obtain and adjust the policies to suit their needs. However, the levels of cover can be reduced or entirely removed to bring the premium down to suit the company’s budget.
“Also, whilst these sites may look like they provide a comprehensive selection of quotes, from a long list of insurers, in actual fact, they are not the full market of providers available, so garage workshop owners may be missing out,” AJG said in a news release.
The broker said that by choosing premium over the correct policy, garage workshop owners could be compromising on their level of protection, with nobody to warn them that this approach could leave them underinsured.
AJR warned that underinsuring to obtain the desired level of premium could leave businesses exposed.
“The only time garages would realise there’s an issue is when they make a claim and find out that they're not covered, or the settlement is less than expected, which could place businesses in a difficult financial position,” the broker said.
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