Today you’ll learn what an insurance broker is, what they do, and how they can help you.
When it comes to finding the best insurance policy, you can seek help from either an insurance agent or an insurance broker.
An insurance broker helps you shop around for insurance. The broker does not represent an insurance carrier. Instead, they work directly for you.
What that means is that the insurance broker will put your best interest first. In fact, in some states they are legally required to do so. The broker won’t provide you with a quote from an insurance provider that they work for, because they work for you. There is no obligation to sell any particular policies.
There are three main kinds of brokers:
As you can see, the typical individual or business will likely find the help they need from a retail broker. Retail brokers are highly knowledgeable in the most common forms of coverage and can get you set up for a successful insurance product purchase.
On the other hand, if you require more specialized insurance coverage and cannot find the right policy that meets your needs, you might need to consult a different kind of insurance broker. Either a surplus lines broker who has access to non-admitted insurers and surplus lines, or a wholesale broker who knows the ins and outs of the specific coverage you’re looking for.
An insurance agent typically works for either a single policy provider or multiple providers. That means that while they will help you with securing quotes and binding you to insurance coverage, they don’t technically work for you.
There are two main types of insurance agents:
If your insurance needs are simple, straightforward, and you have a good idea of which insurance company you want to buy from, then a captive or independent agent might be the optimal insurance advisor to use over brokers. In this case, they will be able to grant you additional insight into the exact policies or insurer you want to know about.
Also Read: What Is An Insurance Carrier? Carrier vs. Agency
Insurance brokers are people who can legally represent a client, be that an individual or a business. The broker will help them find the insurance coverage that they need.
Brokers have what is called a fiduciary duty to their clients. They are responsible for acting in the best interest of the client they are helping, which may involve recommending the most affordable coverage, the most comprehensive coverage, or whatever coverage the client is seeking.
After connecting with an insurance broker, they will help you identify what insurance policies might suit you best based on your conversations and situation.
For commercial insurance, brokers will be able to help a business assess its risks and devise an insurance program that is suitable for that particular company’s risk exposure and vulnerabilities.
Shopping for insurance can be tricky. For example, you know you want auto insurance, but there are so many companies that say they have the best coverage that they make you dizzy. Which insurance company should you go with?
A broker can help you find the best policy across a number of insurance companies. They don’t work for the insurance company. Rather, they work for you – which means you can rest assured that they are working in your best interest.
You could go to a broker with a detailed understanding of insurance, or you could be completely new to the concept of insurance. A broker will guide you along the way.
What an insurance broker can’t do is bind you to the coverage that they recommend, because they are not legally able to do so. But they can greatly simplify the insurance buying process for you.
Many companies have complex needs that aren’t met by the standard insurance market. If your business can’t find the commercial insurance that you need, meeting with a broker can give you not only more insight into your options, but they can also help you access more specialized coverage so that you can get the coverage you need.
You might be wondering how insurance brokers are paid. While it depends on the specific broker, here are the general ways through which brokers are paid.
Our team at Worth Insurance is here to deliver you insurance options with great rates from the top carriers around. Enjoy a simplified and personalized insurance shopping experience.
If you’re looking for more specialized insurance options, we also offer private client custom solutions so that you can cover your risks, assets, and lifestyle without stress.