Insurance brokers help their clients to find and buy insurance policies, usually, without additional costs to the client. Insurance brokers can focus on one particular type of insurance or they can advise their customers on any kind of policies. Every insurance broker has to take courses and pass an examination to receive a license and gain necessary knowledge about insurance, while the requirements to meet for receiving the license vary depending on the state. Moreover, every insurance broker has to maintain their license and take courses and examinations as required by law.
Insurance brokers have access to multiple insurance carriers and policies, and they might also have access to policies not available to most consumers. Brokers assist their clients with selecting the right insurance policies, such as Homeowner’s Insurance, Auto Insurance, or Business Insurance, for example. They analyze the coverages of the various insurance policies in order to make sure the policy meets the insurance needs of the client. Most brokers will continue working with their clients even after the purchase of insurance and provide advice about the questions the clients may have about their policy or filing a claim.
Brokers do not show favoritism towards a certain insurance company, but instead they represent the interests of the client. That is why they receive commissions from sales instead of being paid by the insurance carriers. Depending on the regulations of the state the broker operates in, the commissions range between 2% and 8% of premiums. If you work with an insurance broker, you will not be paying fees for the services they provide you with.