It’s a fair question. You can buy car insurance in five minutes on a comparison site. So why can’t you do the same for your business?
The short answer: you can, for very simple risks. But for most commercial insurance, going direct is a false economy, and here’s why.
What “Going Direct” Actually Means
Going direct means buying insurance straight from an insurer (like Aviva, AXA, or Zurich) or through an online platform, without a broker involved. You choose the policy, you set the limits, you read the small print.
For a sole trader with a laptop and no employees, that might be fine. For any business with premises, staff, vehicles, stock, contractors, or clients, the risks get complicated quickly.
What a Broker Does That a Comparison Site Can’t
A good commercial insurance broker does four things that no website can replicate:
1. They understand your risk
Before placing any insurance, a broker will take the time to understand your business: what you do, where you operate, who you employ, what could go wrong, and what would happen if it did. That understanding shapes every recommendation they make.
A comparison site asks you to fill in a form. A broker asks you the questions you didn’t know to ask yourself.
2. They access the whole market
An independent broker like Castlemead isn’t tied to any insurer. We access 80+ insurance markets, including specialist underwriters and Lloyd’s syndicates that don’t sell direct to the public. That means wider choice, more competitive pricing, and cover tailored to your actual risk, not a standard template.
3. They read the small print so you don’t have to
Insurance policies are full of conditions, warranties, and exclusions. Miss one, and your claim could be denied.
Here’s a real example: when we reviewed cyber insurance wordings across 18 UK insurers, we found that four major insurers don’t include Increased Cost of Working cover in their business interruption section. If your business suffers a cyber attack and needs to pay overtime or bring in emergency IT support, those policies won’t cover it. That’s the kind of detail that only shows up when someone reads every line, and only 7% of people ever do.
At Castlemead, we call this “small print matters”, because it’s never a big deal, until it’s a big deal.
4. They fight your corner at claims
This is where brokers earn their money. When you have a claim, your broker acts as your advocate. They deal with the insurer, challenge unfair decisions, and push for a fair settlement. Without a broker, you’re on your own.
The numbers are stark: around 40% of cyber claims are turned down, often because of warranty breaches the policyholder didn’t know about. Things like using unsupported software, not having MFA deployed, or BYOD phones that violate the policy conditions. A broker who actively manages your compliance, and who conducts independent audits like we do through Fourarmed, can prevent that.
When Going Direct Might Make Sense
To be fair, there are situations where going direct is perfectly reasonable:
- Your business is very small with simple risks (e.g. freelancer, sole trader)
- You only need one straightforward policy (e.g. basic public liability)
- You have deep insurance knowledge yourself
For most mid-market businesses, though, the complexity of the risk, the value at stake, and the time involved in managing insurance all point firmly toward using a broker.
Does Using a Broker Cost More?
Not usually. Brokers are typically paid by commission from the insurer, so there’s no additional cost to you. In many cases, a broker will save you money, by accessing markets you can’t reach direct, negotiating better terms, and structuring your programme more efficiently.
And even where a broker does charge a fee, the value of expert advice, proper cover, and claims support almost always outweighs the cost.
What About at Renewal?
Renewal is exactly the time to involve a broker. Insurers often increase premiums at renewal, counting on inertia to keep you in place. A broker will review the market every year, challenge any increases, and make sure your cover still matches your business.
If you’ve been renewing direct with the same insurer for years, there’s a good chance you’re paying more than you need to, and you may have gaps in your cover you don’t know about.
If you’re currently going direct and wondering whether a broker could do better for your business, we’re happy to take a look. No obligation, no pressure.
Call us on 0117 945 3907 or get in touch.
Frequently Asked Questions
Should I use an insurance broker or buy business insurance directly?
For most commercial businesses, using an independent broker will result in better cover, more competitive pricing, and significantly better protection at claims time. Brokers access the whole market, Castlemead searches 80+ insurers including Lloyd’s syndicates, and review policy wordings in detail before recommending cover. Going direct is reasonable for very simple risks (sole traders, single-policy needs), but any business with premises, staff, or complex liabilities will benefit from a broker’s expertise. See our full comparison above.
Is it cheaper to buy business insurance directly from an insurer?
Usually not. Broker commission is built into the premium whether you use a broker or not, so there is typically no additional cost. In many cases, brokers secure lower premiums because they access wider markets, negotiate terms on your behalf, and structure programmes more efficiently. Direct insurers set their own pricing without competitive pressure from other providers. For mid-market businesses, the savings from broker negotiation and proper risk assessment almost always outweigh any perceived saving from going direct. See our guide on how brokers get paid for more detail.
What does a commercial insurance broker actually do?
A commercial insurance broker assesses your business risks, creates a tailored market presentation, approaches multiple insurers (Castlemead accesses 80+), reviews every policy wording line by line, negotiates terms and pricing, manages mid-term changes, and acts as your claims advocate from first notification to settlement. For specialist risks like cyber, this includes comparing wordings across multiple insurers: Castlemead reviews 18 cyber insurer wordings covering business interruption definitions, supply chain exposure, warranty requirements, and more. The goal is to make sure the policy actually pays out when you need it.
What are the risks of buying business insurance without a broker?
The main risks are gaps in coverage you do not know about, warranties and conditions you may inadvertently breach, and lack of advocacy at claims time. Without a broker reviewing the small print, businesses can end up with policies that exclude key exposures. For example, four major cyber insurers do not include Increased Cost of Working in their business interruption section, a gap that only shows up when someone reads the full wording. Around 40% of cyber claims are turned down, often because of compliance issues the policyholder was unaware of. A broker identifies and resolves these issues before they become claim problems.
Should I use a broker when renewing my commercial insurance?
Yes. Renewal is one of the most important times to involve a broker. Insurers frequently increase premiums at renewal, counting on inertia to keep you in place. A broker will review the market, challenge any increases, check that your cover still matches your current business needs, and identify any new risks that have emerged since the last placement. If you have been renewing directly with the same insurer for several years, there is a good chance you are overpaying and may have coverage gaps. Contact Castlemead for a no-obligation review.
Can a broker access insurers that do not sell directly to businesses?
Yes. Many specialist underwriters and Lloyd’s syndicates do not sell insurance directly to the public: they only accept business through authorised brokers. An independent broker like Castlemead, which accesses 80+ markets, can place cover with these specialist providers. This is particularly valuable for complex or niche risks such as international liability, cyber, aviation, and professional indemnity, where the best terms are often available only through the broker market.
