Choosing a broker
How to judge a fire-insurance broker for your business: questions to ask
Most businesses pick a fire broker on the quote and discover the gaps mid-claim. Here is a plain set of questions you can hold any broker to — including us — that test whether your cover will actually pay.
Brokers look identical on a slide. The difference shows up later — in whether your sum insured was set right, and in who stays on the phone when a claim stalls.
After years of placing and defending commercial fire cover, the pattern is clear: the broker you choose decides more about your claim than the insurer you end up with. These questions apply to any cover, including fire insurance for your business.
The short version
- A broker's regulated duty is to you, the client — not to the insurer.
- Ask how they set the sum insured and on what basis before anything else.
- Ask who handles a claim, and how far they take it.
- Remuneration is built into the premium and regulated; no separate fee, no rebate.
What a fire broker should actually do for you
A fire-insurance broker's duty under IRDAI rules is to you, not to the insurer. A good one sets your sum insured on the right basis, maps your asset register, structures add-ons to your real risk, and stays on a claim until it is settled.
A weaker one places the cheapest policy and reappears at renewal. The questions below tell the two apart before you sign.
The questions that separate advocates from order-takers
Run any broker through this scorecard before you compare on price.
| What to ask | A strong answer | A weak answer |
|---|---|---|
| How will you set my sum insured? | Talks reinstatement vs market value and the 85% threshold. | Offers a round number; valuation never comes up. |
| Will you keep my asset register current? | Annual review and on every material change. | Only revisits cover when the policy lapses. |
| Which add-ons would you leave out? | Can say what to skip for your risk. | Recommends every extension by default. |
| Who handles my claim? | A named point of contact through survey and settlement. | Hands you to an insurer call centre. |
| How are you paid? | Remuneration built into the premium; no rebate. | Vague, or hints at an inducement. |
How fire brokers are paid
Under Indian regulation, a broker's remuneration is built into the policy premium, not charged on top, and offering any rebate of premium is not permitted.
That structure is exactly why an independent broker's incentive can sit with you rather than upstream — the value is in the advice and the claims work, not a side fee.
Red flags
A quote produced before any conversation about your assets; silence on valuation basis; "we'll sort the claim with the insurer" with no named contact; pressure to decide today.
None of these are about price. They are about whether anyone will be standing with you when a claim is contested. Knowing how a claim actually gets settled tells you what to listen for.
Frequently asked questions
Broker, agent, or buying direct — what's the difference?
An agent represents an insurer; a broker's regulated duty is to you, the client; buying direct leaves you to set cover and pursue claims yourself. For commercial fire risk, the valuation and claims support are where the difference is felt.
Does a broker cost extra?
No separate fee is added on — remuneration is built into the premium and regulated, and rebating premium is not permitted.
A general checklist for judging any broker, not advice on a specific policy or insurer.
What happens when you talk to us
A 20-minute video call with a Growth Advisor — no obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You'll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help — even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. For advice about your situation, talk to us.