top of page

What is the Difference Between Agents and Brokers?

Difference Between Agents and Brokers

Agents and brokers both act as intermediaries between insurance companies and insureds. They both help consumers find coverage. So we are left wondering “whats the difference between agents and brokers?” Let’s show you what we’ve found!

If you’re new to the insurance industry or hoping to brush up your knowledge, we’re here to help. Let’s start by defining what each of these terms means.


An insurance agent represents one or more insurance companies and sells their policies. They solicit, negotiate, or instigate insurance contracts on behalf of an insurer. An agent can be independent or an employee of the insurer. Insurance agents are the legal representatives of insurers, rather than policyholders. They have the right to perform certain acts on behalf of the insurers they represent, such as to bind coverage.


A broker is an insurance intermediary who represents the insured rather than the insurer. They assist consumers who are seeking coverage. Unlike independent agents, brokers are not the legal representatives of insurers. This means they often do not have the right to act on behalf of insurers, such as to bind coverage. To bind coverage, the broker must hand off the account to an agent or insurer for the transaction to be completed.

How are Agents and Brokers different?

Agents represent insurance companies. Brokers represent consumers. Agents sell policies from insurance companies they represent. Brokers search for policies from different insurance companies. Agents can bind coverage. Brokers cannot bind coverage.

Related Terms

Carrier Insureds Managing General Agents (MGA)

Related Articles

Welcome to Surplus Lines insurance 101: an overview of the players in the surplus lines insurance industry and their roles and responsibilities. Continue Reading

Filing surplus lines is one of those things that those outside the insurance world don’t appreciate. They don’t realize what a complicated and time-consuming process it can be. Continue Reading

Have you ever heard the term Broker Responsibility state? What does that mean? It is not nearly as daunting as it may sound. Continue Reading

Surplus lines are complex, but your agency can use workflows to keep everything running smoothly. Your workflows help you stay compliant and avoid missed deadlines and penalties. Creating frictionless workflows can take some time. But once these processes are in place, your team is better equipped to manage your workload and produce quality work.

InsCipher is an insurtech company providing software and services that are revolutionizing inefficient insurance processes. Save your agency time and money by automating surplus lines compliance, filing, and reporting. Want to learn more? Request a free demo today

1 commento

Understanding the difference between insurance agents and brokers is key, and this article does a great job breaking it down! It's helpful to know that agents represent insurance companies, while brokers represent consumers. Plus, the related articles provide even more insight into the insurance industry.

For more valuable resources and updates on insurance, I'll be sure to check out It seems like a great platform to stay informed and connected in the world of insurance!

Mi piace
bottom of page