Independent agents can issue insurance policies, brokers can't. When you start your search, you can choose an independent agent or a captive (or direct) agent. An independent agent can sell policies from many different companies. A captive agent sells insurance for a single company.
Independent and captive agents represent insurance companies and receive a commission from the insurance company for the sale of their policies. For more complicated insurance transactions, such as coverage for a small business, you can choose a broker. An insurance broker represents your company by searching the local insurance market for the right coverage at the best price. Because the broker represents you, they usually charge a fee for their services. There are two types of insurance agents.
Independent insurance agencies are separate from the insurance companies they represent, allowing them to offer insurance from more than one company and select the policies that best meet the needs of their customers. Finding a suitable insurance policy can take time. One option to make the process easier is to work with an independent insurance agent. Independent insurance agents are third-party sellers who have relationships with several companies and receive a commission when they sell you a policy. Since they're not tied to a single insurance company, they can help you compare options between several companies to find the policy that's right for you.
A pioneer in insurance technology, Insureon operates the largest online marketplace for small business insurance in the United States. However, many business and personal line customers won't want to consider changing insurance agents until they renew their annual policy, unless they have a problem with the service. In short, successful independent insurance agents can make a comfortable living while serving their communities. Independent insurance agents represent several insurers and can sell you a policy from any of the companies they work with.
Independent insurance agents have the freedom to work with multiple insurance companies, allowing them to offer customers a wider product selection than captive agents, who are limited to the policies of a single insurer. The National Association of Insurance Commissioners (NAIC) offers these tips to help you find the right agent for your insurance needs. Just as independent agents are insurance clients' best ally in finding affordable and quality coverage, the Big “I” is an independent agency's best ally in managing a successful and well-informed operation. An insurance agent represents one or more insurance companies and sells their policies for a commission.
The agent has an agency agreement, or contract, with the insurer that stipulates the different types of insurance the agent can sell and the commission rates for each policy. The agent may also be able to request information about your situation from the insurer before you formally submit an application. If you have questions or are confused about your insurance coverage, contact your state's insurance department.
