Insurance Broker vs Insurance Agent?

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Insurance Broker vs Insurance Agent?

The terms Insurance Broker and Insurance Agent are often used interchangeably and they may be thought of as the same, but there are differences. The main difference is in the perspective of each insurance professional.

In some cases, “Insurance Agents” are also referred to as “Captive Agents”.


How are Insurance Brokers and Insurance Agents Similar?

  • Both insurance brokers and insurance agents act as intermediaries between insurance buyers and insurers.
  • Both must also have the appropriate licenses to distribute the insurance they are selling, while also adhering to any laws or regulations enforced by local insurance departments.
  • Both may be compensated by either salary or commission.


What is an Insurance Broker?

  • An insurance broker represents more than one company
  • An insurance brokers primary duty is to the client
  • An insurance broker can build insurance packages to cover potential gaps and unique situations.


What is an “Insurance agent” (Captive Agent)?

  • An insurance agent typically represents only one insurer so they can only offer one product.
  • An insurance agent is essentially an employee of the company they represent so they are required to act on behalf of the company.
  • An insurance agent can only provide the type of insurance the one company has.


Who is Best for me?

There are two typical approaches to shopping for insurance and it is up to you which works best for your needs; Insurance Agent vs Insurance Broker.  The primary difference between an insurance broker and an insurance agent is who each represents in the transaction.

An insurance broker is a professional who represents consumers in their search for the best insurance policy for their needs. They work closely with their clients to research coverage, terms, conditions, and prices and then recommend the insurance policy that best fits the bill.

Do not be afraid to ask for references before choosing a broker and check their name and license number with the Department of Insurance HERE!


TruSummit Insurance is proud to be an independent broker to serve the needs of our clients. 

To start a quote, call our office or click over to our Quotes page to get started.

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