Difference Between Commercial Insurance Brokers and Agents

Difference Between Commercial Insurance Brokers and Agents

There is a common misconception that commercial insurance brokers serve in the same capacity as commercial insurance agents. While they do both sell commercial insurance policies there aren’t many other similarities. They are very different and serve separate and distinct purposes.

What Commercial Insurance Brokers Do

Commercial insurance brokers do not work with a particular insurance provider. Their job is to find the best commercial insurance policies for their clients, so they work with a number of different insurance firms to find the best rates. Because there are so many different firms available it can be difficult for clients to find the best option on their own, so brokers do that work. As the name suggests, brokers serve as an intermediary between insurance companies and clients.

What Commercial Insurance Agents Do

An insurance agent, on the other hand, only works for one specific insurance firm. Their primary responsibility is to market policies to try to obtain new customers. That said, they actually have more in common with advertising agencies that commercial insurance brokers.

Fundamental Difference Between Brokers and Agents

In addition to the large variance in job responsibilities, there is one fundamental difference between insurance brokers and agents. A commercial insurance broker represents insurance buyers whereas a commercial agent represents insurance sellers.