Figuring out the difference between insurance agents and insurance brokers is complicated. Both offer insurance to you; however, usually an insurance agent is tied to one company, whereas a broker is generally non-exclusive and can write for a variety of companies. While different in how they get quotes for you, both can fit products to the needs of your business.

Commercial insurance brokers and agents need to be knowledgeable about your business needs. They need to sit down with you to assess changes in your business to update your policy. Verify that the agent or broker is experienced in commercial insurance. Check for referrals from others in the business, check for complaints through the department of insurance in your state and ask questions.

Learn about the commercial insurance agents basics before you pick one to work with. Some things you need to know:

1. You can work with an exclusive agent for your business needs.

2. How to locate a commercial insurance broker or agent online.

3. Where to get local insurance agent information online.

Action Steps
The best contacts and resources to help you get it done

Get quotes on commercial insurance agent services

Exclusive agents like to have the reputation of being that 'good neighbor' or offering you helping hands. Many companies like their agencies because of the personal attention that comes from a local agent serving the customer one-on-one.

I recommend: Get a tailored insurance quote from State Farm. Its website shows you a variety of products, allows you to find a local agent and offers you quotes online. Other companies, such as Nationwide, can also give you an online quote for your business needs.

Find insurance broker services online

Business insurance brokers have the luxury of checking with many insurance companies to meet your insurance needs and pricing expectations. You can get several comparative quotes from one insurance company. Online companies now not only allow you to check for services like a broker, but offer quotes from companies that generally use exclusive agents.

I recommend: AllOptions Insurance's website allows you to get quotes from multiple companies in one big one-stop insurance shop. NetQuote also gives you access to hundreds of insurance companies on one website.

Locate an insurance brokerage or agent in your area

Despite the convenience of online quotes, many people still want the easy availability of a local insurance agent they can talk to about their needs. The Internet is a powerful way to find a local agent or broker who knows commercial insurance and their needs.

I recommend: At FindaLocalAgent.com, a form asks basic information to help get you to a local insurance agent or broker. Rather than offer online quotes, Liberty Mutual connects you to a local agent who can meet your insurance needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  With commercial insurance brokers and agents, you typically pay an estimate of your insurance costs. At the end of the term, you're asked to provide accounting summaries. Beware of lowball insurance quotes that may be inaccurate, making you pay more at the end of the term.

In business, insurance is crucial to protect employees, customers and your assets. Sifting through the long list of insurance agents who can meet your needs and general insurance agent information is what most business people do when first looking for insurance coverage from an agent.

Business insurance brokers present you with coverage options and can tailor policies to meet the needs of your business and your budget. A commercial insurance broker should:

1. Be friendly and accessible

2. Have sufficient experience at an insurance brokerage

3. Offer you various insurance options

Action Steps
The best contacts and resources to help you get it done

Find commercial insurance brokers who meet all of your needs

An insurance brokerage should offer an umbrella of coverage. Whether you need only a life insurance agent or need information on group health insurance, agents should be experienced in all areas of insurance needs.

I recommend: Use VentureStreet, a professional network that specializes in finding business insurance brokers in your area that meet your specifications. Simply type in your requests and the experts offer insurance agent information that matches. InsuranceFinder lets you search for an insurance agency by the type of insurance you need and the state you live in.

Compare commercial insurance brokers

Get quotes and compare insurance broker services on the Internet to more easily select the best options for your business.

I recommend: Use 4FreeQuotes.com or InsWeb to easily compare and contrast insurance agent services on the Internet. Choose the "business insurance" option, enter your zip code and other pertinent information and receive free quotes.

Organize your insurance needs

Know your insurance needs to ensure you purchase the right coverage for your business.

I recommend: Utilize the professionals at ABD Insurance and Financial Services to design a coverage plan suitable for your firm. Working closely with you to meet your needs, ABD can create a detailed report of your insurance needs, present it to multiple insurance agents to bid for your business to achieve the most cost-effective coverage for your firm.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Speak with trusted area business owners about the commercial insurance broker they use. Recommended business insurance brokers can most often be trusted to deliver quality insurance agent services.

Insurance brokers and agents can be instrumental in helping you find cost-effective insurance for your company. Calculation of insurance pricing for businesses can be a complex issue. You cannot know the exact pricing for many types of business insurance until after the term of the insurance has expired. Initially, insurance companies may charge you based on an estimate of costs that they will audit at the end of the term. At that time, they'll make adjustments to the premium based on payroll, sales, general ledger and claims.

An insurance brokerage or agency bases insurance pricing off of the risks for the business. This includes the type of business and where it is located, as well as several other factors. In addition, insurance companies consider the number of claims and the type of claims filed. Once risks are considered (and possibly eliminated), there may be discounts for good credit, business longevity, risk reduction measures, business affiliations and such like. The application of these elements, although worthwhile, may cost you in time, energy and finances. Making the most of insurance agents and brokers can save you the same. Maximize these savings by doing the following:

1. Reduce business risks before contacting business insurance brokers and agents

2. Utilize insurance broker services to shop for insurance

3. Get insurance agent information online including quotes

Action Steps
The best contacts and resources to help you get it done

Save money with commercial insurance brokers and agents by reducing risk

Experts agree that the best way to reduce your premium is to be incident free. Retain that discount by being proactive to eliminate many risks with the assistance of your customers and staff. Use these resources to get started.

I recommend: Westfield Insurance and Nationwide Insurance both provide a business risk assessment to help avoid claims. Through Westfield Insurance get insurance industry facts and statistics and learn about sponsorships and grants.

Get more competitive quotes from more companies with commercial insurance brokers

Get quotes from commercial insurance brokers who can offer products and competitive rates from several companies. Several large brokerages offer online quotes from well-known insurance companies as well as local offices across the country for a personal touch.

I recommend: Contact a commercial insurance broker such as Aon for a quote to fit your business needs. They have offices across the country and it is easy to locate a local office. Wells Fargo brokerage provides a variety of insurance products and services to meet your business needs.

Utilize exclusive insurance agent services for competitive quotes

While brokers have the chance to look at a variety of companies, this may not be the best deal. Exclusive insurance agents have access to major insurance carriers. Check with exclusive insurance carriers to look for a good rate for your insurance needs.

I recommend: Look into State Farm Insurance for your business insurance needs. Chubb also offers a variety of services to assist your business. Safeco even offers additional discounts for members of Costco.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Beware of commercial insurance brokers who change you from one company to another every renewal. They may be pocketing bonuses from insurance companies by switching your insurance rather than making sure you are getting the best deal.

Insurance agents key terms not only define important aspects of the insurance industry, they can help you understand how to choose the best company and policy for your needs. With the proper coverage, you can make sure that you have the right amount of insurance to cover your needs in case of an accident or disaster. With key terms, you can understand the difference between an insurance agent and a broker. You can also identify which assets need coverage and which ones don't.

Action Steps
The best contacts and resources to help you get it done

Insurance agent

An insurance agent is the first point of contact for individuals in need of insurance. The agent works for an insurance company, such as State Farm or Farmers. His or her job is to help prospective clients understand the services and coverage offered by the insurance company.

I recommend: InsureLane defines what an insurance agent does, explains the benefits of working with one and helps you understand the financial side of paying an agent.

Insurance broker

Many people interchange the term agent with broker; however, there is a key difference between the two. While an agent works for a specific insurance company, a broker does not. An insurance broker represents the client and works with more than one insurance company or agency in order to provide the best possible coverage for clients.

I recommend: Learn more about the services offered by an insurance broker at the website for Heffernan Insurance Brokerage.

Policy

An insurance policy is the official document that spells out what the insurance company will cover in the effect of damage and at the amount of money the company will pay toward the coverage. It also includes information on the types of damage not covered by the policy. For example, some policies won't cover loss from natural disasters or things like mold.

I recommend: The Insurance Information Institute covers the main aspects of a home owner's policy and breaks it down into layman's terms.

Assets

Most insurance policies protect your assets, which you can define as anything that you own that you can convert to cash. Examples of assets include cash, checking and savings accounts, real estate and vehicles. Assets can be fixed, current or intangible.

I recommend: Accounting Unleashed provides an overview of assets and includes information on fixed, current and intangible assets.

Business owners policy (BOP)

A business owners policy, also called a BOP, is an insurance policy that covers the property and liabilities of a business. The coverage of a BOP varies depending on the insurance company providing the coverage.

I recommend: Nationwide Mutual Insurance Company provides an in-depth look at BOPs.

Umbrella plan, umbrella insurance, umbrella liability insurance

An umbrella plan is a term used by an insurance agent to explain additional coverage. These plans provide additional coverage to the insured individual and may extend coverage to areas not in the original policy.

I recommend: Business Insurance Now defines umbrella liability insurance, provides an example of what it covers and offers a description to show how an insurance company might include it on a policy.