In this article, we discuss the advantages of having an insurance broker help you with your insurance decisions and the difference between insurance agents and insurance brokers.
Blog
March 19, 2026
Regardless of whether you’re new to purchasing insurance or you have worked with different insurance companies over the years, insurance can be challenging to navigate. However, insurance can play a crucial role in helping to safeguard health, vehicles, homes, businesses, and more. There are many types of insurance policies available that may work for different needs, including, for example, homeowners insurance, renters insurance, life insurance, auto insurance, small business insurance, and health insurance.
Finding the right policy goes beyond identifying the type of insurance needed. An insurance company’s reputation, premium rates, deductible amounts, and savings incentives are all important factors to consider when selecting the right insurance policy. Depending upon your specific needs and circumstances, it may be a good idea to reach out to an insurance broker for help.
What Is an Insurance Brokerage?
An insurance brokerage is a professional service that connects individuals or businesses seeking coverage with insurance carriers that provide it. Instead of representing a single carrier, a brokerage will typically work with multiple insurers and aim to help clients navigate the insurance landscape, compare available options, and better understand which policies may fit their needs.
Insurance brokers work within brokerages. Rather than working exclusively for a single insurance company, a broker represents clients seeking coverage and uses their expertise to help find them identify the appropriate insurance coverage options and rates. Since brokers are not tied to a specific insurance company, they can typically provide multiple coverage options based on a client’s needs and circumstances, such as an individual life insurance broker.
When seeking coverage but still determining which type of insurance is appropriate for specific needs, an insurance broker can help by researching and explaining the different options available, ultimately helping to save the customer time, and make more informed decisions.
What Does an Insurance Broker Do?
Insurance brokers are responsible for helping customers identify insurance coverage that fits their specific circumstances. They do this by examining the needs of each individual client and reviewing policies offered by different insurance companies to identify appropriate coverage options and prices. Brokers help clients evaluate insurance options and make recommendations based on their expertise. This may include presenting multiple policy and pricing options to compare, as well as identifying opportunities to combine coverages, where available.
Once the insurance broker and client determine appropriate insurance solution, the policy purchase is typically completed with the insurance carrier, often with the assistance of its licensed agent. Broker compensation varies depending on the arrangement and services provided. In some cases, brokers may charge a fee to the client and in other cases, they may receive commission from the insurance carrier. Some brokers may charge a flat fee, while others may charge a percentage of the insurance premium.
What Is the Difference Between an Insurance Agent and an Insurance Broker?
Insurance brokers are often confused with insurance agents, especially since the terms are sometimes used interchangeably. Both insurance agents and brokers can work as intermediaries between the insurance company and the policyholder. However, brokers typically represent the policyholder, while agents generally represent the insurance company.
Both insurance brokers and insurance agents can specialize in specific areas within a given market, like commercial insurance or auto insurance. Although insurance agents can provide information about different types of insurance and the policies available, they typically represent one or more insurance companies and help place coverage with those insurers once a customer selects a policy. Insurance brokers, by contrast, work with multiple insurers to help clients evaluate coverage options that may fit their needs.
Insurance agents typically work under agency agreements with insurance companies that authorize them to offer specific insurance products. There are generally two types of insurance agents: captive and independent. Captive insurance agents represent a single insurance company and offer that company’s insurance products. Independent insurance agents, on the other hand, work with multiple insurers and can offer clients policies from more than one insurance company. Both captive and independent insurance agents can assist customers throughout the insurance process, including explaining coverage options, helping complete applications and working with the insurer to finalize the policy.
Although insurance agents represent the insurance company in placing coverage, they can still assist customers in evaluating available options. A customer may choose to work with an insurance agent if they prefer to purchase coverage from a particular insurance company or if they want to bundle a policy with other coverage they already have in place. Insurance agents may also be a good option for customers who have already researched their coverage needs and prefer to obtain a policy from a specific insurer.
What Is the Benefit of Using an Insurance Broker?
So, what are the benefits of working with an insurance broker instead of directly with an insurance agent? Insurance brokers generally have access to information about coverage and pricing from a wider marketplace and can use that information to help clients evaluate available options. Insurance brokers can conduct research on behalf of clients in order to help them compare options and choose the coverage that may fit their needs.
The Bottom Line
One of the main differences between insurance agents and insurance brokers is who they represent: agents typically represent one or more insurance companies while insurance brokers generally work with clients to help evaluate coverage options from multiple insurers. Since brokers work with a variety of carriers, they can be a good option for customers who want to compare coverage and pricing or who are considering changing insurance companies. In some circumstances, brokers may also be able to identify available discounts which may be offered by certain insurers.
Acrisure understands trends in the market and can help you navigate available insurance policy options. Contact Acrisure today to learn more.
Insurance Broker FAQ
What are the key functions of an insurance brokerage?
Understanding client needs: Gathering details about a client’s situation, potential risks, budget, and goals to help determine what types of coverage are appropriate.
- Researching available policies: Reviewing offerings from multiple insurers to identify plans that may align with the client’s requirements.
- Providing guidance: Helping clients understand available coverage options, inclduing terms, limitations and pricing.
- Assisting with the application process: Helping clients complete paperwork accurately and submitting the necessary documents to insurers.
- Reviewing coverage over time: Checking in periodically to help ensure policies still align with client’s circumstances, regulations, or risks evolve.
Why should I consider using an insurance broker?
If you are overwhelmed by the number of insurance companies and options available, or if you have complex needs, an insurance broker can help make the insurance purchase process more manageable. Whether you are looking to insure multiple vehicles, purchasing coverage for a business, or exploring different types of coverage available, an insurance broker can help you find a solution that’s right for you.
Although you do not need an insurance broker to obtain coverage and may choose to shop around for coverage on your own, an insurance broker can help you save time and better understand your options. The terms and conditions of insurance policies can sometimes be difficult to understand if you are not familiar with them. If you want help reviewing the details of your policy, consider working with an insurance broker who can explain the policy’s terms, conditions, and exclusions in straightforward language so you can better understand your options.
How are insurance brokers compensated?
Broker compensation typically comes from two primary sources: commissions paid by the insurance companies and, in some cases broker fees. Broker fees may vary depending on the broker and services provided. Because brokers typically work with multiple insurers rather than representing a single insurance company, they help clients review available coverage options and pricing from different carriers,
If a broker does not charge a fee, they are generally compensated through commissions paid by the insurance company for the policies they help place. These commissions are typically calculated as a percentage of the policy premium. In many cases, a higher percentage may be paid on a policy’s first-year premium, with a smaller percentage paid on renewal premiums in subsequent years.
How do I find an insurance broker?
Finding an insurance broker often starts with researching reputable brokerages online and asking for recommendations from trusted sources such as colleagues, friends, or business partners. Reviewing a broker’s website can help you understand the types of insurance they handle, the industries they serve, and whether they are licensed to operate in your state. Many people also look for brokers who take time to understand their needs and can help compare coverage options from multiple insurance carriers.
Acrisure works with individuals and businesses across a range of insurance needs, including business, auto, home, and other coverages, helping clients explore options that align with their circumstances.
