Agent or Broker?

Agent or Broker……. Who does your business insurance?

Most people do not really know the difference between an insurance agent and an insurance broker. There is a big difference, especially when you have to make a decision about your business insurance.  You will also find significant differences for personal insurance matters as well. 

 An insurance agent is a licensed, professional in each state where they do business. Brokers and Surplus Lines Brokers are also licensed where they do business.

The professional agent has a contract with an insurance company and is considered by law as employee of the insurance company. Consumers can go directly to a company employed agent to purchase their insurance. The agent’s supply of insurance is limited by the company who employs the agent. The name of the insurance company is on the door or the sign outside is highlighting the insurance company name.

Brokers on the other hand are considered to be employees of the client as defined by law. Brokers have agreements with other brokers and insurance companies, giving them a wider variety of companies to do business with. The broker is not restricted or limited to representing one particular insurance company or group of companies. That’s why the brokers name or firm is on the sign outside his/her door.

Surplus lines insurance brokers deal with non- traditional types of insurance that admitted insurance companies and many licensed agents with in a state do not sell. Things like sporting events, amusement parks, theatrical events, clubs, vacant buildings and many other categories of specialty insurance.

We all know the story about the guy who was with that BIGCOMPANY you see on television. He had a good agent too!  Then a claim or two after 20 years , or a teenager  starts driving and gets a ticket. BIGCOMPANY doubles the rates and sometimes BIGCOMPANY just drops them all together. The agent’s hands are tied. His company gives him no choice. Been nice knowing you!

In America we all have choices. It is a wonder of our democracy and what the free market is all about.

Associated Insurance Professionals, Inc. are licensed agents, brokers and surplus lines brokers. We just have more choices when it comes to buying your business insurance in the states where we are licensed:  New Mexico, Colorado , Arizona , Nevada and California.

You don’t need to get into this kind of situation before you experience how brokers work. It is as easy as a phone call or a visit to our web site. We will provide you personal service by a licensed insurance professional and fast response by the communication technology method of your choice. More companies, more choices, better pricing.