With the changing landscape in how commercial insurance is available to the public, we often get questions on the subject of when is it best to use a broker versus when is it best to purchase direct.

Option A: Using a Broker/Agent

The traditional way to purchase commercial insurance is to use an insurance broker/agent who collects the specifics on your business and “shops” them out to various underwriters, wholesalers and carriers to find you the best insurance at the best rate that will fit all your business’ needs.

Advantages of using a Broker

• A broker will shop many markets to get you the right coverage, so you don’t have to spend the time doing the work

• Brokers have access to unique markets that can provide tailored policies and have better pricing than available directly to consumers

• A broker should help you understand all the legal jargon of insurance requirements, terms and endorsements

• Brokers make sure the insurance purchased satisfies insurance requirements a client, licensing agency or employer may be requiring

Situations when a Broker/Agent may be a better option

• Have complex insurance requirements that need expertise in fully understanding

• Require a lot of servicing work i.e. contractors need a lot of certificates of insurance (COI’s) and brokers assist you with this process

• When you need more than one insurance line such as General Liability, Workers Comp, Commercial Auto, etc. your broker assists in getting all your coverages in place for you

• You don’t have time to check multiple carriers yourself and can afford to pay a broker fee to get it done for you

If you would like help from a an insurance broker, feel free to ask us any questions you might have, we’re here to help!

Option B: Buying Insurance Direct or online

There are now more options than ever to buy direct from carriers or buy online without working with an agent/broker. Many “insuretech” services let you go online and get an instant policy for your business.

Advantages of buying insurance direct

• You can get an instant insurance policy by going to a website, filling in your info and paying the down payment

• No broker fees going direct through a wholesaler or carrier, when available

• Very simple for a simple business policy of a single line i.e. General Liability or E&O

• No need to deal with anyone; can be bound 24/7

Situations when buying direct may be better

• You have simple insurance requirements

• When insurance is needed ASAP and you need to provide proof of insurance immediately

• You want to keep initial cost down

• You don’t need any support or additional servicing during the process

If want to buy insurance online, feel free to consult our other resources to learn more about great places to purchase insurance online.

As can be seen, both options are good for various situations. It will always come down to what works best for you and your business.

Please note that the information on this website, including all articles, videos, and presentations, is expressly the opinion of the creator/author of that material. We are not lawyers and are not providing legal advice in regard to insurance. It is respectfully offered with the intention that exploring this material will be educational and helpful to you.