Why might a company choose to work with an intermediary for purchasing insurance?

A company may choose to work with an intermediary for purchasing insurance primarily to obtain advice on suitable policy types. Intermediaries, such as insurance brokers, have specialized knowledge of the insurance market and an understanding of the wide array of available policies. They can assess a company's specific needs, identify potential risks, and recommend coverage options that align with those needs. This guidance can be invaluable in navigating complex insurance products and ensuring that the company is adequately protected against risks.

While there are benefits associated with the other choices, such as managing insolvency risks or tax implications, the central value of engaging an intermediary lies in their ability to provide expert advice tailored to the specific circumstances of the company. This expertise helps ensure that the company makes informed decisions when selecting insurance coverage, which is crucial for effective risk management.