Insurance Brokers vs. Captive Agents

Best Contractor & Small Business Insurance Quotes Agents and brokers act as intermediaries between you (the insurance buyer) and your insurers. Each has a legal duty to help you obtain appropriate coverage at a reasonable price. Each must have a license to distribute the type of insurance he or she is selling. An agent or broker must also adhere to the regulations enforced by your state insurance department.

The main difference between a broker and an agent has to do with whom they represent. An agent represents the insurance company. He or she acts as an extension of the insurer. A broker, on the other hand, represents the insurance buyer.

Captive agents charge all of the costs of insurance in one price. For example if you pay $1,000 that will include the cost of insurance and commissions for the agent. Captive Agents (State Farm, Farmers, etc) sell policies from their parent company. These agents do not reveal their commissions but they do have to earn a living and that is being paid for their work.

Insurance Brokers pay a wholesale price for a policy. For example the wholesale price might be $750 then add on commissions ($250) making it $1,000 total. All broker fees have to be disclosed and approved by the customer. Because insurance brokers can shop multiple insurers, brokers can most often find the most competitive price for insurance. Also Brokers can find insurance for customers who are hard-to-insure.

When you go to the ice cream shop they don't just sell vanilla. Most ice cream shops have dozens of flavors with dozens of toppings available. This is the same as CBW Insurance Agency. Do yourself a flavor, call us today.
  • I am so glad I found this office. They are very professional, easy going and explain everything clearly. I was having a hard time looking for reliable insurance to cover my business for a while. Thanks to the office staff, I was able to cover everything I needed and secured my contact the same day!! Thanks again. Weight off my shoulders!Kimberly M
  • Professional team, great quotes and rates, fast respond. This is what I need for my insurance. Thank you, guys!Alex S.
  • We feel very blessed to have these guys back us up during our troubled days. Everyone we worked with was knowledgeable and always shows a great willingness to help and will give you the best personal attention and care, with honesty. I am very pleased with the service they provided to us.Juliana B.

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