Insurance agent

An insurance agent is an intermediary between insurance companies and insurance buyers. Agents can explain which insurance you need to buy for yourself or your business and which policy provisions are most important — in plain English.

Insurance agents can either be employees or independent contractors. They can work in-house at an insurance company, in an agency or for an agent-owned small business. Insurance agents are usually paid by commission after your initial purchase and when you renew your policy over time.

What does an insurance agent do?

Insurance agents adhere to high ethical standards and add value to your small business by:

• Explaining how small business insurance works.
• Assessing your business risks.
• Identifying ways to mitigate your business risk with insurance.
• Prioritizing which insurance to buy first.
• Helping you process your applications.
• Filing insurance claims on your behalf.
• Reviewing your insurance needs every year or two.

When do you need an insurance agent?

Most small business owners need an insurance agent at every stage of their business.

Agents are crucial during the launch of your business. That’s a time of heightened risks due to operating in a new industry or learning new procedures. An agent is a huge help to assess risks and recommend coverage.

As a company matures, it might launch new product lines, enter additional market segments or begin using new technologies. All of these steps might pose new risks. A skilled insurance agent can help you assess these vulnerabilities and help protect your business with insurance.

What are the two types of insurance agents?

Captive agents are employees of — or independent contractors for — one insurance company. They usually have a deep relationship with the insurer, including financing to help them enter the business, company-paid training and funds to set up an office. Captive agents can be a great resource for small business owners because they’re extremely knowledgeable about one insurer’s products and procedures.

Independent agents are similar to captive agents except they represent more than one insurer. This gives their clients access to more insurance solutions and potentially lower premiums.

Though captive and independent insurance agents are company representatives, they still must adhere to state insurance laws prohibiting misrepresentation, fraud or other anti-consumer practices.

How are insurance agents regulated?

Insurance agents hold licenses from their state insurance department. To earn their credential, they must:

• Complete prelicensing education.
• Pass a licensing test.
• Take continuing education courses to maintain their licenses.

When shopping for business insurance from either an insurance agent or an insurance broker, contact your insurance department to confirm that the license number is valid and that the agent has a clean disciplinary record.

Does NEXT work with insurance agents?

NEXT wants your insurance purchase to be quick, easy and convenient. That’s why we give you two ways to get a quote and get the coverage your small business needs:

• Get a free instant quote and buy your coverage online — fast.
• Reach out to one of our knowledgeable licensed agents.

No matter how you buy insurance from NEXT, we’ll be there when you need us.

NEXT makes small business insurance simple and fast. Start a quote, customize your options and access your proof of insurance 24/7 in about 10 minutes.

Get a free instant quote with NEXT.