Insurer
What Is an Insurer?
An insurer is the insurance company that underwrites, prices, and issues your insurance policies. The insurer is also responsible for paying covered claims.
What Does an Insurer Do?
An insurer (aka carrier) does more than just write policies. Here’s what they handle:
- Evaluate risk. This is called underwriting — basically, deciding how risky your business is and setting a fair price to cover you.
- Issue coverage. Insurers create different types of small business insurance policies, endorsements, and certificates.
- Collect premiums. They handle billing and process service changes.
- Pay claims. When something goes wrong, they investigate, make coverage decisions, and pay what the policy promises.
- Manage risks. Many insurers offer risk management resources to help your business stay safe and reduce accidents.
- Stay financially sound. They maintain reserves and follow regulations so they’re able to pay claims.
- Renew or not. At the end of your policy, both you and your insurer decide whether to continue (renew) or end (non-renew, aka cancel) coverage.
In short, your insurer is your financial safety net and the rule-setter for your policy.
Insurer vs Insurance Agent/Broker: What’s the Difference?
It’s easy to mix up insurers with insurance agents or insurance brokers. To remember the difference, think of buying insurance like going on a road trip:
- Your agent or broker is the travel buddy with the map. They help you plan the route, find the best stops, and steer you toward the right coverage.
- Your insurer pays for gas and roadside assistance. They’ve got the resources. So, when something breaks down, they’re the ones who pay to get you moving again.
Here’s how the two roles compare (and when you might want to talk to each one):
| Insurer (aka Insurance Carrier) | Insurance Agent/Broker | |
|---|---|---|
|
Main job |
Takes on risk, underwrites policies, and pays covered claim |
Advises you, shops the market, and helps you find the right coverage |
|
Works for |
Themselves (the one who takes on the risk) |
You (broker) or specific insurers (appointed agent) |
|
What they give you |
Policies, endorsements, renewals, cancellations |
Quotes, proposals, and applications (which they then give to insurers) |
|
Who pays claims |
Insurer pays — they investigate, approve or deny, and pay claims |
Doesn’t pay — but they guide you through the claims process |
|
Best to contact for |
Claim status, policy wording, billing questions |
Coverage advice, shopping options, proof of insurance, service changes |
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