If you’re looking for an insurance agent or a broker, you may be confused about the difference between the two. Some people are under the impression that agents and brokers are one and the same. That’s because both professionals can help you choose the right insurance plan to fit your business’s needs.
But there are some key differences. As a business owner, understanding these differences can help you make an informed decision about which professional to work with.
What is an insurance agent? Well, to put it simply, an insurance agent is a licensed professional who represents a single insurance carrier. Agents are sometimes referred to as general agents because they offer customers a variety of insurance products from just one carrier.
Agents are usually paid by commission. This means that they get a portion of the premium from the insurance company, based on the business’s total premium. Agents typically get paid a percentage of the premium between 3.5 to 6 per cent.
Agents are the perfect choice if you’re looking for a single carrier that offers a variety of products. Since an agent only works with one carrier, they understand the carrier’s products and the pricing structure of an insurance company.
What is a broker? A broker is a licensed professional who works independently and represents clients. Brokers are more flexible than agents because they offer multiple insurance carriers to customers.
Brokers have expertise in a variety of insurance products and are trained to help you choose the right coverage for your needs. They work with a variety of carriers and can find you the best coverage at the best prices.
Since a broker gets paid by the insurance company based on percentages, the broker has an incentive to save you money, which could mean a lower premium for your business.
While an agent can often be the best choice for a single carrier and its products and pricing structure, a broker will often give you more options and save you money.
Now that you know the difference between an insurance agent and a broker, you can choose the right professional to work with. You’re not limited to just one insurance carrier, which means that you have many options to choose from.
Choosing a broker can save you time and money. When you work with a broker, you’ll have access to multiple insurance carriers and their products. That means you can find the right coverage to make your business more efficient.
Here are some other benefits you’ll experience when you work with a broker:
Insurance brokers work with many different insurance carriers, so they know the ins and outs of each company. Working with a broker can help you assess risk with more detail and can offer more insight into your risk profile.
If you choose to work with a broker, you’ll be able to focus on running your business, instead of trying to figure out the right coverage for your business.
A broker can work with multiple insurance carriers and can find you the best coverage at the best price. Even if you’re just starting out, you can expect to get the same cost-effective coverage as the larger businesses around you.
As mentioned above, working with a broker gives you access to competitive rates from multiple carriers. That’s because brokers work with multiple carriers and can find you the best coverage at the best price.
When you’re looking for the right insurance coverage for your business, it can be overwhelming. You may be tempted to hire an insurance agent to help you find the right coverage. But if you want to get more than one carrier’s prices and coverage, working with a broker is a better choice.
Ensura is a team of excellent general insurance brokers with a simple mission: to help people get the right insurance at the right price. Get in touch with us and explore our risk management solutions, so you can gain peace of mind without burning holes in your pockets.
Disclaimer: As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
