Many people use the terms “insurance broker” and “insurance agent” interchangeably. However, there are significant differences between the two, and it is important to choose one that best suits your unique needs.
Insurance Broker
An insurance broker, such as Gibb Insurance Brokers, is an independent business that partners with many insurance companies to sell insurance. One benefit when working with an insurance broker is that they have access to a wide range of products from many companies; thereby numerous coverage choices and premium options.
Insurance brokers have the ability to “shop the market” to find the best policies that meet the needs of their clients. Shopping the market is particularly advantageous as brokers can discover potential discounts and determine if the client qualifies.
Because brokers have extensive experience with many companies, they are knowledgeable in which company offers superior customer service and handling claims: so brokers can again work in the best interest of their clients.
An insurance broker has extensive education and training for that designation and is registered with a provincial association which governs their conduct.
Finally, insurance brokers are paid by the companies they partner with, so their expertise, access to many companies and ability to shop the market comes at no extra cost to the client.
Insurance Agent
The most significant difference between an insurance broker and an insurance agent is that the insurance agent only represents one insurance company. Depending on your insurance needs, this can be considered a positive or a negative factor.
While insurance agents do not have access to a wide range of products, coverage options and premium differences, the insurance agent knows thoroughly the nuances of the products they do offer.
Insurance agents are also well-trained, but not to the extent of insurance brokers. Insurance agents are also paid by the company they represent.
Further Considerations
While insurance might not be something you think about every day, be assured that your insurance professional does! One of the most important aspects when choosing either an insurance broker or an insurance agent is their ability to serve you when you need them most.
• Are they available on your schedule? Either in person by phone or email?
• Do they respond quickly to inquiries?
• Do they keep you informed?
• If managing insurance online or paperless is important to you, do they offer that option?
If you have any questions about your insurance needs, we are here for you. Please reach out to us anytime. 519-736-8228