FAQ – Why Should Companies Work with an Insurance Broker?
Do you have questions about the role of an insurance broker? On this page, we answer the most frequently asked questions about insurance brokerage for businesses, helping you understand the benefits of professional guidance and make more informed decisions.
What is an insurance broker, and how does it differ from an
insurance company?
- An insurance broker is an independent professional,
registered with the ASF, who represents the client’s interests and compares quotes
from different insurance companies. The insurance company is the entity that assumes the risk and
issues the policy.
What types of insurance are required for a company in Portugal?
- Workers’ Compensation Insurance is mandatory for any company with
employees. Other types of insurance, such as liability insurance or
multi-risk insurance, may be mandatory depending on the industry or required
by contracts with clients.
Does working with a mediator involve additional costs for the company?
- No. The broker is paid a commission by the insurance company, which is included in the
premium. The customer does not pay an extra fee for using the broker’s services.
How often should I review my company's insurance policies?
- An annual review is recommended, or whenever there is a
significant change in the business (growth, relocation, new
equipment, or employees).
Can I switch insurance brokers without losing the policies I already have?
- Yes. Changing brokers does not cancel existing policies—
The new broker will manage the existing contracts with the same
insurers (or may propose alternatives at renewal). The process is simple
and does not result in any interruption in coverage.
How much does it cost to purchase business insurance?
- The cost depends on factors such as the industry, the number of employees, revenue, location, and claims history. Therefore, the most reliable way to determine the actual cost is to request a customized quote rather than comparing general estimates.
What happens if my company doesn't have workers' compensation insurance work-related accidents?
- Failure to obtain this mandatory insurance can result in fines and makes the company directly liable for all costs associated with an accident involving an employee—medical expenses, compensation, and pensions—rather than having these costs covered by the insurance company.
Is professional liability insurance mandatory?
- It depends on the sector. In some regulated professions (e.g., engineering,
accounting, healthcare), it is required by law or by professional associations. In other
sectors, it is not mandatory, but it is often required in contracts with
clients or in public tenders.
Does the broker also help when a claim is filed, or only with the sale of the policy?
- A mediator who provides ongoing support assists the company throughout the entire claim process claim from the initial report to the resolution—serving as a direct liaison with the insurance company to expedite the process.
Is it possible to have different insurance policies with various insurers, all managed by the same broker?
- Yes, that is actually one of the advantages of working with an independent broker: you can consolidate policies purchased from different insurers into a single point of contact, even if each insurer was chosen because it offered the best quote for that specific risk.
Do startups and small businesses also need an insurance broker?
- Yes. The size of the company does not eliminate risks—in fact, it can
make the impact of a claim severe because there is less financial cushion
to absorb losses. An insurance broker helps tailor the coverage to the
budget and the business’s stage of growth.
If you didn't find the answer you were looking for, please contact the R2 Seguros team. We're here to answer all your questions and help you find the insurance solution that best suits your needs.