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Part of Comparing named UK small business insurance comparison sites and brokers, and how each is paid
Comparing named UK small business insurance comparison sites and brokers, and how each is paid
Named UK comparison sites and brokers for small business insurance, how each is paid, a six-step process, and where a cheap quote can go wrong.
What to take away
- Comparison sites such as MoneySuperMarket, Compare the Market, GoCompare and Quotezone are free and earn commission when a policy is sold.
- Online brokers such as Simply Business, Superscript and PolicyBee can save money on trades and professional risks.
- Specialist brokers such as Premierline, Swinton Business and Towergate may save money on unusual risks but can charge a fee.
- Direct insurers such as Direct Line for Business and Hiscox can be cheap for simple cover but quote only their own policy.
How regulation changes what you can compare
Arranging insurance is a regulated activity, defined in the Regulated Activities Order 2001.
Authorised intermediaries must hold professional indemnity cover. The FCA sets out what that cover must do under its rules on professional indemnity insurance.
What the commission model does to a ranking
Most UK comparison sites act as introducers and are paid when a policy is sold. This is the model described in Wikipedia's entry on comparison shopping websites. Two sites quoting the same insurer can show different prices once fees and commission differ.
MoneySuperMarket, Compare the Market, GoCompare and Quotezone are free to users and earn money from insurers or brokers. Simply Business and Superscript work as online brokers, so they also earn commission. Premierline and PolicyBee may charge a broker fee. Before you enter details, apply the checks for reviewing an insurance intermediary, starting with which insurers the firm can approach.
A six-step comparison process
- Collect the facts firsttrade, turnover, payroll, subcontractors and five years of claims.
- Identify the covers the law or your contracts require, starting with employers' liability where you have staff.
- Run identical facts through two platforms and one broker. Use MoneySuperMarket, Compare the Market and Simply Business as examples.
- Hold excess, limits and payment basis constant.
- Compare total first-year cost, not the headline premiumpremium, arrangement fee, credit charge and insurance premium tax. For illustration, at the standard 12% rate, tax adds £120 to a £1,000 premium.
- Read the policy summary, then confirm the insurer on the Financial Services Register.
Comparing the named routes
Named examples
- Comparison site
- MoneySuperMarket, Compare the Market, GoCompare, Quotezone
- Online broker
- Simply Business, Superscript
- Specialist broker
- PolicyBee, Premierline, Swinton Business, Towergate
- Direct insurer
- Direct Line for Business, Hiscox
- Trade scheme
- Trade Direct Insurance, Constructaquote
Paid by
- Comparison site
- Commission
- Online broker
- Commission, sometimes fee
- Specialist broker
- Commission, fee, or both
- Direct insurer
- Premium only
- Trade scheme
- Commission
Best for
- Comparison site
- Standard shop or office
- Online broker
- Trades and professional risks
- Specialist broker
- Unusual or liability risks
- Direct insurer
- Simple cover
- Trade scheme
- Preset trade cover
Watch-out
- Comparison site
- Ranking follows panel deals
- Online broker
- Check panel and fees
- Specialist broker
- Whether the market is searched
- Direct insurer
- Little comparison
- Trade scheme
- Wording may not fit
Named UK insurance routes compared
Comparison site
- Named examples
- MoneySuperMarket, Compare the Market
- Paid by
- Commission
- Best for
- Standard shop or office
- Watch-out
- Ranking follows panel deals
Online broker
- Named examples
- Simply Business, Superscript
- Paid by
- Commission, sometimes fee
- Best for
- Trades and professional risks
- Watch-out
- Check panel and fees
Specialist broker
- Named examples
- PolicyBee, Premierline
- Paid by
- Commission, fee, or both
- Best for
- Unusual or liability risks
- Watch-out
- Whether market is searched
Direct insurer
- Named examples
- Direct Line, Hiscox
- Paid by
- Premium only
- Best for
- Simple cover
- Watch-out
- Little comparison
Where cheap quotes go wrong
Cheap business insurance quotes often raise the excess, cut a limit or narrow the definition of insured work. A policy that excludes subcontractors, or requires forced entry for tool theft, rarely looks cheap at claim stage. A consultant who buys public liability instead of professional indemnity has bought the wrong contract.
Applying insurance service standards rather than price is the better test when a quote looks low. Sites such as Trade Direct Insurance and Constructaquote can save money for trades, but check tool limits and excesses.
This article is general guidance, not advice on your circumstances, and anything unusual should go to a qualified insurance adviser.
Common questions
Which named sites tend to save money?
No single site wins for every risk. MoneySuperMarket and Compare the Market are often cheapest for a standard shop or office. Simply Business and Superscript can be strong for trades and professional indemnity. PolicyBee and Premierline may win on unusual risks.
Are comparison sites cheaper than going direct?
Sometimes, but not reliably. MoneySuperMarket or Compare the Market can beat Direct Line for Business on a standard risk. Hiscox may be competitive for professional indemnity.
Do I have to use an FCA authorised broker?
Any firm arranging or advising on your cover must be authorised or act as an appointed representative. Check the Financial Services Register before you share details.
What does a no-obligation quote commit me to?
Nothing at the point of quoting. Once you accept and pay, the answers you gave form part of the contract. A wrong turnover or claims answer can affect a claim.
How many quotes should a small business compare?
Three is usually enough: two platforms and one broker. More than that rarely changes the price, because the same insurers sit behind most panels.
