How does an insurance agent differ from a broker?

An insurance agent works for a specific insurer, which means they have a contractual relationship with that company and are primarily focused on selling the products offered by that insurer. This positioning allows the agent to provide specialized knowledge about the insurer’s products, policies, and procedures, creating a streamlined process for the consumer who is looking for coverage from that particular company.

In contrast, a broker operates independently and represents multiple insurance companies, which allows them to offer a wider range of options to their clients. This distinction is key in understanding the roles within the insurance industry, as agents are often limited to selling policies from one insurer, while brokers can compare products from various companies to find the best fit for a client's needs.