What is an insurance broker?
An insurance broker is an individual who serves as an intermediary between another individual and an insurance company. Insurance brokers typically know a great deal about the individual or organization they represent. This enables them to find appropriate coverage that best fits the needs of their client. An insurance broker’s in-depth knowledge of various clients and insurance policies make them ideal for those with both basic and complex insurance needs.
Insurance brokers make money by receiving a commission from insurance companies or a fee from their clients when suitable insurance coverage is found. Even with the fee, the resulting coverage can be cheaper than what the client could find on his or her own. While independent agents are similar to insurance brokers in that they do not work for a specific insurance company and receive a commission as payment, insurance brokers represent a person or organization in need of insurance. Independent agents, on the other hand, represent insurance companies.
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When do I need to be aware of insurance brokers?
There are a variety of reasons for individuals to utilize the services of an insurance broker when purchasing insurance coverage:
- Because insurance brokers are working with you and not in the insurance companies themselves, they are able to compare various insurers’ coverage to obtain the most unbiased, and strongest policy recommendations.
- Insurance brokers have the expertise required to find you the most economical insurance options.
- An Insurance brokers can ensure that your insurance policy is especially tailored to your situation and whatever you are insuring, unlike insurance comparison websites where quotes are too generalized.