Insurance Broker
What Is an Insurance Broker?
An insurance broker is a licensed professional who helps individuals or businesses find insurance coverage by comparing policies from multiple insurance companies. Brokers act as intermediaries between insurance providers and customers.
Unlike agents who represent a specific insurer, brokers typically work independently.
Why It Matters
Insurance brokers can help consumers navigate complex insurance options and identify policies that match their needs and budget.
Because brokers often work with multiple insurers, they can provide broader comparisons of coverage and pricing.
How Insurance Brokers Work
Insurance brokers assist clients by:
- evaluating insurance needs
- comparing policies from different insurers
- explaining coverage options
- helping clients select appropriate policies
Brokers may receive commissions from insurance companies when policies are purchased.
Example
A small business owner working with an insurance broker to compare liability insurance policies from several insurers is using brokerage services.
Insurance Broker vs Insurance Agent
- A broker represents the client and shops policies across multiple insurers.
- An agent typically represents one insurance company and sells that company’s products.
FAQs About Insurance Brokers
Do insurance brokers charge fees?
Some brokers charge fees, but many are compensated through commissions.
Can brokers offer policies from multiple insurers?
Yes. Brokers typically work with several insurance providers.
Do brokers help with claims?
Some brokers assist clients with the claims process.
Related Terms
