What is an Insurance Broker?
An insurance broker is a licensed professional who works on behalf of their clients, rather than representing a single insurance company. Their role is to assess the needs of individuals or businesses and find appropriate insurance coverage options from a range of insurers. Brokers typically handle different types of insurance such as homeowners, auto, and property insurance, but they do not sell life or health insurance.
Insurance brokers work with multiple insurance providers to compare policies, ensuring clients receive the most suitable coverage at the best rates. This can include recommending specific policy features, negotiating terms, and helping with the claims process. They also ensure that clients fully understand their coverage and are protected against risks.
In many cases, insurance brokers provide valuable advice on reducing premiums by identifying appropriate risk management strategies. For example, a broker may suggest bundling home and auto insurance for discounts or recommend property improvements to lower rates.
Insurance brokers are compensated through commissions paid by the insurance company, meaning their services are generally free to the client.