Business insurance models compared: direct, advised, comparison and affinity routes

Small businesses in England reach commercial cover through four distribution models: direct, advised, comparison and affinity routes. The label matters less than who advises, which insurers are considered, how the intermediary is paid and who handles changes or claims.

What to take away

Direct insurer: Hiscox, AXA and NFU Mutual

Direct means the customer deals with the insurer or its brand, not a broker. Hiscox quotes professional indemnity and small business cover online for UK firms, and its direct journey carries no personal recommendation. AXA sells business cover direct as well, including trades and shop policies.

NFU Mutual, a mutual separate from the NFU, sells through its own local agency network to farms and rural firms. The service chain is short and easy to identify, but the options belong to that one provider. Check whether the route gives a personal recommendation, who underwrites the policy, and where claims are handled.

Advised broker: Marsh Commercial, Gallagher, Howden and PolicyBee

An advised broker assesses needs and recommends a policy within its stated service scope. Marsh Commercial serves UK small and mid-sized firms. Gallagher and Howden run large UK retail broking arms, and PolicyBee, part of Brown & Brown Europe, advises freelancers, consultants and small firms. The British Insurance Brokers' Association runs a find-a-broker service.

The FCA's SME broker guidance explains that brokers giving advice and a recommendation assess whether the recommended policy is suitable. It also warns that a limited insurer panel may restrict alternatives.

Ask whether the analysis is fair and personal, tied to specified insurers or drawn from another panel. Specialist advice may be valuable for unusual work, several locations or complex contracts, but the customer still needs to verify the disclosure supplied. Commission-only deals are common; where a fee applies, small placements typically add a few hundred pounds.

Non-advised broker or digital intermediary: Simply Business and Superscript

This route arranges cover without a personal recommendation. Simply Business, bought by Travelers in 2017, runs an online insurer panel and states it charges customers no fee, earning commission instead. Superscript, formerly Digital Risks, arranges commercial cover online for small firms and freelancers.

Filters and questions narrow the products, yet the business stays responsible for deciding whether the result meets its needs. Record the insurer set, eligibility logic, assistance available and how errors get corrected. Do not describe a guided online journey as advice unless the firm says it provides a personal recommendation. The output and legal service status must agree.

Price-comparison websites: MoneySuperMarket, Confused.com, GoCompare and Quotezone

MoneySuperMarket, part of Moneysupermarket Group plc, runs a business insurance channel. Confused.com, launched by Admiral Group in 2002, and GoCompare, owned by Future plc, both list business cover. Compare the Market sits within BGL Group, and Quotezone.co.uk is run by Seopa in Belfast for trades and small firms.

Prices may come from live quotations, indicative examples or partners. Check that every named product was assessed on the same risk data and that paid position is visible. The customer pays nothing, and the site typically earns commission or a lead fee, so ranking can reflect commercial terms.

The FCA's general insurance intermediary authorisation page expressly includes price-comparison websites among the businesses that may need relevant permissions. A specific model requires perimeter advice rather than inference from the page.

Affinity or embedded route: the FSB, Airbnb and Uber

A trade body, platform, landlord or software service may offer insurance alongside membership or another product. The Federation of Small Businesses offers members an insurance service arranged with a partner broker. Airbnb includes up to $1m of host liability cover and up to $3m of damage protection in its AirCover for Hosts terms.

AXA announced a partnership with Uber in 2018 to cover driver injuries in Europe. Convenience does not establish suitability. Identify the insurer, intermediary and target group. Treat the optional nature, remuneration and exit process as separate questions from the core service.

Compare remuneration and responsibility

FCA Handbook ICOBS 4 contains status, service-scope and remuneration disclosure rules, subject to its application provisions. It says a commercial customer may request prompt written disclosure of intermediary commission in cash terms or, where that is not possible, the calculation basis.

Insurance Premium Tax adds 12% to most commercial premiums, with a higher 20% rate on some risks. Ask for the gross premium split into premium, tax, fees and commission before comparing two quotations.

Run the comparison on one consistent risk description. Give every route the same trade, turnover, payroll and locations, plus the same activities and claims history. Preserve the questions and responses. A low quotation may reflect a different assumption or missing cover rather than a more efficient channel. Check the policy documents, fees and payment terms before drawing a conclusion.

Service after purchase also deserves a test. Ask how quickly the route can issue evidence, amend an activity, add a location and acknowledge a claim. Record whether those tasks are performed by the distributor, insurer or another firm, because the sales brand alone may not show the accountable party.

No model wins by default. Choose the route whose coverage, expertise, remuneration and accountability fit the business's risk, then compare the actual policy wording and total cost.

Before you act

Common questions

How can a business tell whether it is getting advice or only information?

Check the firm's written service and status disclosure. An advised broker assesses needs and recommends a suitable policy within its stated scope. A non-advised broker or digital intermediary, such as Simply Business or Superscript, can arrange cover without a personal recommendation, and the business remains responsible for deciding whether the result meets its needs.

What should a business check about a price-comparison website?

Establish whether prices come from live quotations, indicative examples or partners, and whether every named product was assessed on the same risk data. Paid position and panel gaps must be visible. The FCA includes price-comparison websites among businesses that may need relevant permissions. MoneySuperMarket and Quotezone typically earn commission or lead fees, so check how ranking works.

What disclosure can a commercial customer request about commission?

Under ICOBS 4, a commercial customer may request prompt written disclosure of intermediary commission in cash terms or, where that is not possible, the calculation basis. Status, service-scope and remuneration disclosure rules apply subject to the Handbook's application provisions.