How do insurance agents and brokers assist businesses?

Answer 1

Insurance Agents generally work for the insurance company and sell the insurance offered by that company. A good agent should be able to understand the needs of the customer and fulfill those needs as best they can with the types of insurance available to them (from the company they work for). The agent may or may not be involved in implementing, servicing and/or renewing the policies they sell.

Insurance Brokers generally work for the insured (the person or business buying the insurance). They help the insured find the best insurance company to meet their needs with the best mix of price and coverage. A good broker should thoroughly understand the needs of the customers and know the market well enough to find the insurance company that will best fulfill those needs. The Insurance Broker will usually be involved in implementing, servicing, and renewing the policies.

There are also insurance brokers that specialize in certain types of insurance. These are usually niche markets that require more in-depth knowledge and experience in that particular type of insurance. This type of insurance is usually not a one size fits all type of insurance.

For example, business credit insurance is a very unique type of property and casualty insurance that is offered only to businesses that sell to other businesses on open credit terms. This type of insurance requires the attention of the insured and the broker throughout the year as the customers' needs and the coverage may change.

Globally, there are several Business Credit Insurance Brokers. Most of these offer only business credit insurance (and related business services). In the United States, many of these specialty brokers have gained their experience and knowledge of the market place by working as an agent for a major business credit insurance company (sometimes for many years).