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What is an Independent Insurance Broker?

Most buyers realize that an insurance Broker can be a great resource when they are shopping for the right insurance coverage as well as when they encounter an insurable event. What many customers don’t recognize is that there are two distinct types of agents; captive and independent agents and/or Brokers.

Below are some ways you can recognize each type of Agent and Broker:


• Captive Utah Insurance Agents represent typically only represent one insurance company. If the captive company has subsidiaries ,the agent is able to write coverage for the subsidiaries as well, but they are not able to write policies for any insurer outside their organization.

• Independent Utah Insurance Brokers works with many insurance carriers. This flexibility gives Broker the capability to provide you a much broader selection of insurance choices than a captive agent is able to. This versatility is not only important when you're initially shopping for insurance; it also comes into play annually, during your policy renewals. A Broker has the ability to shop hundreds of insurance carriers to find the best value for your money.  A good broker knows which carriers have an appetite for your specific insurance need, and can customize an insurance plan uniquely designed for you or your business.  

Though an independent Broker has greater freedoms than captives, that does not mean that they can easily write policies for any insurer. The Broker needs to be appointed with a carrier before they can write their products. Insurers have distinct and strict guidelines agents must follow in order to be appointed with their company. This means, if you see a product advertised on television or online, you should go to the carriers website to find an appointed Broker in your area. You can't assume all independent Brokers write business with all carriers. Independent Brokers also have the resources to customize policy riders and premiums by combining different coverage's to create an insurance package suited to all of your
needs.

Below are a few examples of the customized options:


• Underwriting standards vary by insurers which make certain companies a better match for your needs. These underwriting variances not only impact your premiums, but they also decide whether or not a policy can be approved.

• Captive agents must write for their company no matter their financial stability or AM rating. Independent Brokers have the option to only write policies with A rated carriers, ensuring your assets will always be protected in the event of an insurable event.

• Non-Standard Risk (Non-Preferred Markets) Brokers have the ability to write  insurance policies, or insure risk that other traditional insurance agency or carriers decline or cannot find a market that will Underwrite a particular risk.

When selecting the Broker you want to acquire coverage through, be sure to think about the distinctions between captive Agents and independent Brokers. Choosing the right policy is an important decision; choosing the Broker you buy your coverage through should be just as important.

Utah Insurance Solutions specialize in working with individuals and businesses to help them develop customized insurance plans that meet their unique needs.  Many factors play into implementing the appropriate insurance plan, and for this reason it is imperative that you work with a knowledgeable Utah insurance broker. Utah Insurance Solutions success is predicated on our ability to make other business owners more successful at what they do. 
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