Broker VS. Agent insurance. The Difference Between them.

Agent and Broker provide the same services. Each is your primary point of communication with the Insurer, and both will help generate documents, process payments, and service your policy.

But why the different titles? What is the difference between a Captive Agent and an Independent Broker?

Let’s talk about Agent Vs. Broker…

The difference is, that a captive agent with a household name insurer, may only be able to provide coverage from only that particular insurer, or a very limited market of insurers.
The available coverage options may not be the most competitive, or may not be available at all.

An independent broker is free to obtain an appointment from a wide array of insurers.
This allows a brokerage to provide clients with multiple quotes from different insurers to make sure their coverage and premium are competitive.
Brokers will also likely be able to provide coverage for businesses that a captive agent cannot.
Often insurers will choose to no longer cover a particular risk or class of business, this could sever a long relationship with a great agent and leave the business without coverage.

Whereas A broker with a more diverse market might be able to provide a replacement insurer and stay with the business as the insurance landscape changes.