Why Use a Broker for Your Guest House Insurance?

Insurance is all about protection, safeguarding your business, your family or yourself if something unexpected happens. It’s one of the wisest investments you’ll ever make.

But how do you select an insurance company? How can you be sure which policy is right for your needs? How do you make sense of all that fine print?

A professional insurance broker will first of all seek to understand your insurance requirements and then find the right policy for you. A broker will also explain clearly what is and what is not covered under your proposed policy, and will then process your application if you decide to go ahead. In the event of a claim, your broker will take care of all the paperwork and follow up with your insurance company to make sure your claim receives prompt attention.

All insurance brokers in South Africa are regulated by the Financial Services Board and are required to be licensed by the FSB. This means that every insurance broker registered with the FSB has to follow strict codes of conduct when arranging insurance.


MYTH No. 1

You have to pay for the services of an insurance broker
Whilst some brokers will charge clients a fee for arranging an insurance policy, insurance brokers are traditionally remunerated by insurance companies. Ensure your broker does not charge additional broker fees in addition to the remuneration they receive from the insurance company.

MYTH No. 2

You can do a better job arranging your own insurance
Insurance is a legal contract and like any other legal contract could cost you millions without an expert helping you. In addition, your broker (if independent) knows the market place, all the options and best deals.

MYTH No. 3

Premiums are lower when commissions do not have to be paid to brokers.
Direct Insurers boast of cutting out the middle man, however often companies not dealing with brokers have substantially higher advertising budgets so that the public are aware of their product, plus large telesales teams – the result is often that there is no saving, just a loss of personal service.

MYTH No. 4

Brokers are independent and can do anything they like without reporting to anybody
The FAIS Act makes brokers fully accountable for their actions and the FAIS Ombudsman is there to ensure this happens. Brokers have strict compliance, auditing and reporting guidelines that include ongoing professional development, qualifications, supervision and complaints procedures.

MYTH No. 5

If a broker messes up, you have no protection against that.
Apart from the protection afforded by the FAIS Act, brokers are required to be insured against making professional errors. The insuring public is within its right to enquire whether a broker holds this type of insurance cover (Professional Indemnity cover). Ensure your broker carries the maximum protection possible.

Incompass carries professional indemnity insurance of R5, 000, 000 – the maximum cover available.


There can be no denying that some brokers and rogue elements have historically given brokers a bad name, however legislative changes have seen quality, professionalism, training and accountability counteract old bad practises.

There are many excellent brokers now providing a great service. Incompass have grown to become one of the largest guest house insurance brokers in South Africa, with a retention of clients exceeding 98%, our commitment to service has seen this growth fuelled by our clients and industry leaders (such as tourism offices and guest house memberships), something we are particularly proud of.

Why not see for yourself, and see what value Incompass can add to your business!!

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