Whether you just bought a new home that you need to insure, want to upgrade your life insurance policy to accommodate the needs of your growing family, or started your own small business, you have plenty of coverage options and insurance companies from which to choose. So many, in fact, that you may be overwhelmed by the options. Fortunately, there are professionals who can help you cut through the policies that don’t work for you and find an insurance solution that’s right for you.
Insurance brokers are familiar with the available insurance policies and coverages and which insurance companies are best to work with, so they can help you find a solution that works for you. By identifying your specific risk management requirements and needs, an insurance broker can help you secure the coverage that is just right for you.
If you wonder, “What does an insurance broker do?” you have come to the right place. Learn more about what an insurance broker for insurance is, how they differ from insurance agents, and why you should consider contacting an experienced broker today.
What Is an Insurance Broker?
In general, an insurance broker acts as an intermediary, or a middleman, between the consumer seeking an insurance policy and insurance companies. A broker can help you navigate the world of insurance to find a policy that meets your specific needs. The best part is that insurance brokers have knowledge and experience with a wide variety of insurance types and companies — from health and life insurance to home and accident insurance — so they can help you find competitive prices in a fraction of the time it could take you on your own.
With their insurance company relationships and industry knowledge, an insurance broker can be an excellent resource if you are looking for a good deal but need help figuring out where to start. Instead of filling out numerous applications and slogging through the various options available, you can rely on a broker to help you focus your efforts on insurance companies that offer the right policies and coverages for what you need.
You can save valuable time and money by working with an insurance broker. Once you find a policy that fits your needs, the insurance broker will work directly with the insurance company on your behalf to help you through the final steps, making the process a breeze from beginning to end.
What Is the Difference Between an Insurance Broker and an Insurance Agent?
It can be easy to confuse insurance brokers and independent insurance agents, as there is a lot of overlap in what they do. However, an insurance broker differs from an insurance agent in that they represent you, the consumer, instead of any specific insurance company. Because of this, insurance brokers have a duty to prioritize your needs instead of acting on behalf of any individual insurance company. They will work with you to help find the right coverage(s) for your situation, no matter what that looks like for you.
Insurance agents can also help you find the appropriate coverage, but their primary duty is to represent the insurance companies on whose behalf they are working. Because insurance agents are acting for specific insurance companies, they are generally only able to offer products from those specific companies, which could mean that you only have access to potentially better deals from other insurance companies. Insurance agents are also limited in the types of policies that they can sell, so if you need more varied policies, an insurance broker can often provide better access to more comprehensive solutions.
Why Should I Consider Using an Insurance Broker?
If you are overwhelmed with the vast selection of insurance companies or if you have more complicated needs than most consumers, an insurance broker can help make the insurance purchase process more efficient and effective. Whether you have multiple cars that you need to insure or need insurance for your business, you can trust the expertise of an insurance broker to help you find a deal that’s right for you. Insurance brokers take the time to listen and understand exactly what you are looking for before they suggest different policies that could be a good fit.
Although you do not need an insurance broker to get insured and can shop around yourself to find a policy that you think is right for you, an insurance broker can help you save time and answer your insurance and risk management questions. Insurance policies can sometimes include terms and conditions or other language that can be confusing if you are not familiar with them. If you want to understand the details of your policy, consider working with an insurance broker that can help break it down and explain a policy’s terms, conditions, and exclusions in language that everyone can understand. This way, you can be completely confident when making your insurance purchase.
How Are Insurance Brokers Compensated?
While the primary focus for insurance brokers is on the needs of the consumer, they need to be compensated for their efforts. Most of the compensation paid to brokers comes from two main sources: commissions paid by the insurance companies and broker fees. Fees will vary depending on the broker that you work with, but they will be reasonably related to the broker’s services since they don’t represent specific insurance companies and instead focus on individual consumers. They work toward a solution that’s in the best interests of their clients and aim for high customer satisfaction, which means you can count on prices that won’t break the bank.
If they don’t charge a fee, insurance brokers are generally compensated by receiving commissions on the policies they help place. These commissions are paid for by the insurance company and are typically a percentage of the premium on the policies they help place, usually with a higher percentage paid for a policy’s first-year premium and then a smaller percentage on renewal policies or premiums paid for the following years.
Finding an Insurance Broker
Take the stress and guesswork out of searching for the right insurance policy by turning to an experienced insurance broker. Acrisure is a preferred choice for insurance brokering with vast knowledge and experience in all types of insurance, from business insurance to auto insurance and everything in between.
For more information about insurance brokers or how to get started finding coverage that’s right for you, contact us today. We are happy to answer any questions you may have and look forward to connecting you with an insurance provider that will help meet your needs.