What Is The Difference Between A Broker And An Insurance Agent?

If you are considering a career in the insurance industry, you may have heard the terms “insurance broker” and “insurance agent” tossed around. Both are professionals in the industry that act as intermediaries between an insurance carrier and buyer. Both professionals must also have the proper licenses to sell insurance policies while adhering to regulations and laws enforced by the local insurance departments. However, both these two job titles have distinct differences.

An insurance broker is only allowed to sell the insurance product within a specific jurisdiction and is not associated with any specific insurance company. On the other hand, insurance agents are usually associated with one company, so they sell only the policies of the company they work for. Let’s take a closer look at the major difference between a broker and an insurance agent.


The legal duties for insurance agents are higher than for brokers. This is mainly because an insurance agent is responsible for the client they represent and the insurance carrier they work for. On the other hand, a broker is liable to only the client they represent. However, if an agent or broker misrepresents the client, they can be sued. Since insurance agents have more obligations, they need to be more educated and informed about situations that can put them in trouble.

Compensation and Commission

Both insurance agents and brokers have commissioned-based jobs. But since agents work with a single insurance company, they have only one compensation plan. In contrast, the commissions for brokers vary from company to company. Some insurance companies offer higher commission rates for brokers selling their products; others don’t. However, brokers can enroll their clients with the insurance companies of their choice. But this may not always be possible since not all insurance companies sell the products that meet most client’s requirements. So, it may be challenging to maintain a steady income.

Variety of Products Offered

Generally, an insurance agent can represent a maximum of 1 each of health, life, and general insurance. Also, insurance agents don’t have access to all the policies from all the insurance carriers. While an insurance broker can get your information for the insurance plans and companies available, this doesn’t limit them. Brokers also have what it takes to further give their clients more details on several products and help them choose the one that suits their needs best.

Here at Western Marketing, we strive to give you the best of both worlds. To learn more about how we can work with you, feel free to reach out to us anytime.