what is an insurance broker

An insurance broker is a licensed professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs. Unlike insurance agents, who represent a small number of insurance providers, a broker works with a variety of carriers. They represent consumers in their search for coverage and can sell policies from several different insurance companies for a commission. Brokers can save consumers time and money, but they may charge a broker fee for their services. Insurance brokers can help consumers who have multiple cars or homes, want to thoroughly understand the ins and outs of their policy, need insurance for a business, want to shop around with multiple insurers without investing their time or energy, or want a personal relationship with someone invested in knowing their background and coverage needs. Brokers make money off commissions from selling insurance to individuals or businesses, and most commissions are 2% to 8% of premiums, depending on state regulations. While brokers can’t technically sell insurance, they work on behalf of their clients to find the right policy at the right price and guide them through the enrollment process.