One can get insured using an insurance professional. For developing the business, insurance is needed. The insurance can be obtained from the professionals of insurance like Insurance agents and Insurance brokers.
Insurance agents: These act as the mediators between the insurance company and the insured person. For the accurate processing of forms on time, premiums and the paperwork, agents are responsible. Agents need not necessarily examine the business and provide the type of coverage. One should be careful in selecting the best insurance for the needed coverage. The agents have the authority to bind the coverage.
In general, insurance agents are of two types. They are: Captive and Independent. Captive will sell the policies for only one insurance company, whereas Independent agent works for the different insurers.
Brokers: These are also called as the super-independent agents. It is safe to choose the licensed brokers, if you are opting for the Insurance brokers. They will provide various types of products for selecting the best and the adequate coverage for the business. They are even more experienced than the agent. They will help the people for selecting the right coverage which they need. One need not pay to the broker as the insurance company which you are using will pay the amount for the broker in the form of commission. They do not have any authority for binding the coverage.
These are some of the differences between the agents and the brokers.