As a seasoned business owner, you must have been approached multiple times by both insurance agents as well as insurance brokers in Calgary with a proposal to insure your business.
However, have you ever stopped for a while and actually thought about the differences between these two professional titles. While at first glance, they might appear to be grossly similar, in reality, there are subtle differences between the two, which you need to be aware of as a prospective customer, and thus in today’s blog, we will explore exactly that.
Who Is an Insurance Agent?
The most common type of insurance professional we tend to encounter amongst our day-to-day interactions is an insurance agent; but what does this title mean?
In simple terms, an insurance agent is a professional who helps the insurance company sell insurance plans to prospective customers. An insurance agent works for the insurance company, and they are paid a commission amount per successful sale. It is the responsibility of the insurance agent to help the customer understand the various insurance policies available and how they work.
Globally there are two main types of insurance agents, the first being captive agents who typically only work with one insurance company and independent insurance agents who work with multiple insurance companies at the same time. In either of the scenarios, the insurance agent works on a commission, and they have the liberty to execute an insurance transaction from start to finish.
Who Is an Insurance Broker?
Now the other type of insurance professional you will most commonly encounter is an insurance broker. There are many such business insurance brokers in Calgary, and at their essence, they are insurance professionals who represent the client in a transaction and help them understand the ins and outs of the various insurance plans available in the market.
During the entire process, an insurance broker will closely collaborate with the client such that they can accurately understand their needs and accordingly suggest a plan which meets their requirements. Similar to insurance agents, insurance brokers can also represent multiple clients at the same time and charge them a commission per consultation or successful purchase.
Insurance Agent vs Insurance Brokers: The Exact Differences
As you can understand by now, there are essentially two main differences between insurance agents and insurance brokers.
● The insurance agent represents the insurance company in the transaction, and they can work with multiple insurance companies at the same time in exchange for a commission on successful sales.
● The insurance broker represents the client in the transaction, and they can also simultaneously work with multiple clients; however, they should always keep the best interest of the client in mind.
Conclusion: Which One Should You Choose?
Now that you are familiar with the difference between an insurance agent and an insurance broker, it is abundantly clear that if you are on the market for meeting your exact needs by availing a business insurance, then a business insurance broker in Calgary like Beneficial Insurance Solutions will be the best choice for you, as no matter what they will always put your needs first.
