Insurance Basics: Insurance Agent, Broker, and Underwriter. What is the difference?
Tips for Insurance for Party Bus Owners / Party Vehicle Owners
Have you ever wondered how insurance works? Learning who to talk to when you need insurance will save you a lot of time and hassle. So lets talk about the differences between Insurance Agent, Insurance Broker, and Insurance Underwriter. This will help you manage your Party Vehicle Business, and hopefully get you the best rates.
Let’s get started!
First up, we have the Insurance Agent. Think of them as the salesperson of the insurance world. They work for a specific insurance company and sell their policies to potential clients.
- Insurance Agents work for one specific insurance company
- They are like salespeople for insurance
- They sell policies directly to clients
Next, we have the Insurance Broker. Brokers are like matchmakers, but for insurance. They don’t work for any specific insurance company, but rather, they work for the client. They take the client’s needs and match them with the insurance company that offers the best policy for them.
- Insurance Brokers work for the client
- They are like matchmakers for insurance
- They find the best insurance policies for their clients
Finally, we have the Insurance Underwriter. These folks are the risk assessors of the insurance world. They work for the insurance company and are responsible for determining how much risk the company is willing to take on with a particular client or policy.
- Insurance Underwriters work for the insurance company
- They assess how much risk the company is willing to take on
- They determine whether or not to offer insurance policies to clients
Now, let’s put all of this into context.
Let’s say you own a company that transports people in buses, cars, and pedicabs. You know you need insurance, but you’re not sure where to start.
- If you go to an Insurance Agent, they’ll sell you a policy from the insurance company they work for.
- If you go to an Insurance Broker, they’ll find the best policy for your specific needs from any insurance company.
- If you go to an Insurance Underwriter, they’ll assess the risk of insuring your business and determine whether or not to offer you a policy.
So, there you have it! The differences between an Insurance Agent, Insurance Broker, and Insurance Underwriter in the context of companies that transport people in buses, cars, and pedicabs.
How can this information help you?
If you need a new policy, we suggest you start to hunt for a good Insurance broker. Lloyds of London has an entire list of brokers here. A good broker can listen to your needs, and shop for a product designed for you.
I hope this post was helpful and enjoyable. Remember, when it comes to insurance, it’s important to know who you’re working with and what they can do for you. Happy transporting!
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