The Difference Between Insurance Agents and Brokers


Insurance agents and insurance brokers often get confused with one another, but they are very different. Read on to learn more about insurance brokerage vs. insurance agency.

Insurance Agents

Agents are employees who represent insurance companies. They act for insurers and sell policies to anyone who is seeking coverage. Agents can be independent contractors which means they can represent several different companies at one time. Agents can also be employed by one insurance company. Agents who are employed by a specific company will only represent their employer. They are generally salaried and do not work on commission. Sometimes agents can only offer certain types of coverage. If you’re looking for a specific type of policy, you’ll want to make sure to find someone who can offer it.

Insurance Brokers

Brokers, on the other hand, represent clients and not agencies. They do not provide coverage, they are trying to find the best coverage option for their clients – and will generally contact several different companies to find the best option. They collect quotes from different providers and try to obtain the best coverage for their clients. Additional information about brokers can be found at


Both agents and brokers share the same primary responsibility, which is to help people secure necessary insurance at a reasonable cost. They also must ensure compliance with all state regulations.