What is an Independent Insurance Agent?

An independent agent typically shops for insurance products from many carriers and does not represent a single company.

Independent insurance agents and agencies work with clients to assess risk and identify which products a business or family may need. There are a number of different products that agents sell including Workers Comp, Liability, Health, Property and Life. An independent insurance agent typically does not represent a single carrier but shops for coverage for the consumer from more than one provider. For their knowledge, time and experience they collect a commission but do not collect a salary from carriers. They are required to be licensed in the states that they sell policies. They own and retain accounts, policies and renewals that they sell using their access to multiple companies to deliver those products.

Independent insurance agents are responsible for a large majority of policies bought by business and commercial consumers. Exclusive agents who are salaried employees of the insurance company capture the majority of policies bought by family and personal line consumers. Because of the complexities in insuring businesses like contractors, roofers and restaurants, independent agents have an advantage by being able to access multiple companies to deliver those products. It is to the advantage of the consumer who is able to receive a quote and compare available rates to find a competitive price and consider alternatives including PEO or Employee Leasing.

A good agent offers a level of professional confidence to their clients. Whether you choose an exclusive or independent agent they should be able to thoroughly assess risk and offer products to meet those needs. They should be available to answer questions about state laws, requirements and see to it that you are getting the best and fairest treatment within the states guidelines. They should provide fast, friendly service if you need to file a claim and treat you as a person, not a policy, after all they work for you.

* The above terms and opinions are to be used for descriptive and reference purposes only. Please review your individual policy for full definitions, exclusions and endorsements. Should you have any questions, please contact your Broker or Agent.