Securing the right insurance requires many individuals and businesses to seek professional assistance. However, beginners often find it hard to identify whether they need to ask for assistance from an insurance broker or insurance agent. This is when you should do some research to identify which one to hire.

More often than not, people get confused about the roles each insurance expert plays. This is one of the reasons why these terms are often used interchangeably. But if you’re having a hard time many ways to figure out what’s best for you or your business.

In this article, we’ll help you identify which expert you should hire to help you with your insurance needs.

1. Understanding the roles

Insurance Agents

Insurance agents are affiliated with a company and act as the middleman between the client and the insurance company. They promote the policies specifically offered by the insurance company or companies with which they’re affiliated. Moreover, they can represent as many companies as they like. There’s no limit when it comes to company representation in the insurance industry.

As a representative of the insurance company or companies, they know everything about the policies, products, and various processes. Usually, they earn through commissions, or by having a percentage on the premiums they sell.

Meanwhile, since an insurance agent represents various insurance companies, it doesn't mean that they can’t provide the best policy based on your needs and preferences. The more insurance companies they represent, the more policies they can recommend.

Insurance Brokers

On the other hand, insurance brokers are independent experts who work on behalf of their clients. Since they’re not affiliated with any insurance company, they can provide a wider range of policy options.

First, the insurance broker will assess your needs and specific circumstances. After that, they look for the insurance that suits you best and gives you as many options as possible. Finally, you can pick a policy in your best interest, and they will help you with the registration, and further management of your insurance policy.

Whether it’s for personal use or business, you can look for a reliable insurance broker that can give you enough choice, so you can make an informed decision.

2. Consider your specific needs

When choosing whether to hire an insurance agent or insurance broker, you should consider your preferences and specific needs.

For instance, if you’re looking for business insurance, and you still don’t know what’s best for your company, hire an insurance broker to give you every possible business insurance policy there is.

Meanwhile, if you already what policy you want to get, hire an insurance agent affiliated with the specific policy you want. That way they can provide you with comprehensive details about the policy you’re interested in.

In essence, if you don’t have any idea or background about getting the insurance you need, it’s best to ask an insurance broker. On the other hand, if you already have something in mind, and just need more information about it, ask an insurance agent.

3. If you prefer a specialised approach

Are you looking for a more specialised insurance policy? Usually, these things are covered by insurance agents. In a specialised approach, the insurance policy fits based on your needs. For instance, when you provide an insurance agent with your budget and your reason for getting the insurance, they can provide you with the right options based on the data.

Having a deep understanding of the products of the company with which they’re affiliated can give you as much information as you need. This also applies if you have a strong preference in terms of the insurance company.

4. For a more customised approach

If you’re looking for a more customised option, an insurance broker can help you in exploring a wide range of insurance providers and policies. In the customised option, you can manually include additional products to your insurance premium.

Initially, your insurance broker will assess your needs based on the information you provided. However, you can also make the necessary adjustments depending on your liking.

Aside from the customisation option, brokers can provide an objective evaluation of your risks, and other essential things to consider when getting insurance.

Final Thoughts

When deciding whether you want to hire an insurance agent or an insurance broker, you can’t come up with a single answer. It usually depends on your needs and preferences, so make sure you have all the information you need before hiring one.

You can do some research or try consulting with both types of experts to familiarise yourself with the differences.

We hope this article helps you get started with knowing the right expert to hire and help you with your insurance needs. If you want to discuss more about this topic, don’t hesitate to leave a comment below!