What is a Broker?
A broker is a licensed professional who acts as an intermediary between insurance buyers and insurance companies. Unlike agents who work for a specific insurer, brokers represent the client’s interests and work to find the best policies for their needs. They help clients navigate complex insurance options, providing advice and handling all the paperwork involved in the process.
Brokers typically specialize in various types of insurance, including personal and business insurance, such as homeowners, car, and property insurance. They play an important role in ensuring clients get adequate coverage at competitive rates while also assisting with claims when necessary.
For example, a homeowner might use a broker to find a policy that covers both standard risks and unique issues, like flood or earthquake insurance. Similarly, business owners might rely on brokers to customize insurance packages that protect their property, vehicles, and liability exposures.
Brokers are compensated through commissions paid by insurance companies, but their loyalty is to the client. They aim to find the best solutions that fit their clients’ coverage needs.