What Is Insurance Broker?
A broker is a licensed professional who shops multiple insurance companies on your behalf and is paid by commission or fee. Unlike a "captive agent" who represents one insurer, a broker can compare policies across carriers to find coverage that fits your needs. In many U.S. states brokers have a fiduciary-style duty to act in your interest.
Why it matters
Using a broker can save time and surface options a single-agent channel would never show, especially for unusual risks.
Common confusion
A broker represents you; a captive agent represents one insurer. An "independent agent" is similar to a broker but may be appointed by specific carriers rather than truly open-market.
Frequently Asked Questions
How is a broker paid?
Typically by a commission from the insurer on the policy sold, or sometimes a flat fee you agree to in writing. Always ask upfront.
Is a broker better than buying direct?
For standard needs, direct can be fine and cheaper. For complex risks or comparing carriers, a broker’s breadth helps.