An insurance broker is an intermediary between small business owners and insurance products from dozens of insurers.
After learning facts about your business, brokers apply their extensive knowledge of business risk management, small business insurance policies and different insurance companies to help you find a provider well-suited to your company’s risk and budget.
Unlike insurance agents who represent a single insurance company, brokers provide coverage from multiple insurers.
Insurance brokers typically work in insurance agencies, either as an employee or as an independent contractor. An insurance broker may also operate their own agency and have a sales and service team to support them.
Compensated via commission, the more insurance they sell, the more money they make. Unlike agents, some insurance brokers may charge fees for insurance advice or helping clients file claims. State insurance departments regulate broker fees.
In some states, insurance brokers operate as fiduciaries, meaning they must put their clients’ needs first.
Here are some of the tasks brokers handle for their small business clients:
The industry expertise of an insurance broker can be helpful when your company has large or unusual business risks.
Because brokers typically have relationships with many different insurance companies, they can sometimes bring you a more unique and specialized coverage package.
What are the different types of insurance brokers?
There are three types of insurance brokers:
State insurance departments license insurance brokers. To earn a license, brokers must:
Most states let you verify a broker’s license number and disciplinary status on their website.
NEXT sells through insurance brokers and licensed insurance agents, but many of our small business clients love the convenience of buying coverage online.
NEXT is easy and always available. We give you 24/7 access to your plan and your policies to help you manage your coverage on your schedule.
Start a quote, customize your options and access your proof of insurance in about 10 minutes.
Get a free instant quote with NEXT.
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.