Insurance Agency
What Is an Insurance Agency?
An insurance agency is a business that helps people or companies find, understand, and buy the coverage that fits their needs. Think of them as a guide to navigating the world of insurance, so you don’t have to get covered alone.
What Do Insurance Agencies Do?
Insurance agencies work with insurance carriers to match customers with the right protection for their goals and budgets. Their role is to help you understand options, compare prices, and purchase coverage without the confusion.
Do I Need to Use an Agency to Buy a Policy From Insurance Canopy?
No, many small businesses can get covered directly from Insurance Canopy, all online, without needing to work with an agency. If you have a more unique business, our licensed agents and brokers can tailor a policy to your specific needs. Either way, we’re here to help protect your business!
Is an Insurance Agency the Same as a Broker or Brokerage?
Insurance agencies and brokers are similar — they both help you find coverage — but there’s a key difference:
- Agencies represent one or more insurance companies and sell their policies directly
- Brokers work for you, the customer, and compare multiple insurers to find your best fit
Think of agencies as partners with insurers and brokers as advocates for buyers.
What’s an Independent Insurance Agency vs a Carrier?
An insurance agency is your guide, while your carrier is the provider of your coverage.
| Aspect | Insurance Agency | Insurance Carrier |
|---|---|---|
|
Role |
Acts as your go-between with carriers |
Is the actual company that creates and underwrites insurance policies |
|
Who They Represent |
One or more carriers |
Themselves (the insurer) |
|
What They Do |
Sells policies, answers questions, and helps you manage coverage |
Creates policies, sets rates, and pays out claims |
|
Customer Relationship |
Helps you find and buy the right policy |
Handles claims, underwriting, and policy fulfillment |
|
Licensing |
Must be licensed to sell or service policies in your state |
Must be licensed to issue insurance products in your state |
|
Main Goal |
Match you with the best insurance options |
Provide the actual coverage and assume the risk |
Aspect: Role
Insurance Agency: Acts as your go-between with carriers
Insurance Carrier: Is the actual company that creates and underwrites insurance policies
Aspect: Who They Represent
Insurance Agency: One or more carriers
Insurance Carrier: Themselves (the insurer)
Aspect: What They Do
Insurance Agency: Sells policies, answers questions, and helps you manage coverage
Insurance Carrier: Creates policies, sets rates, and pays out claims
Aspect: Customer Relationship
Insurance Agency: Helps you find and buy the right policy
Insurance Carrier: Handles claims, underwriting, and policy fulfillment
Aspect: Licensing
Insurance Agency: Must be licensed to sell or service policies in your state
Insurance Carrier: Must be licensed to issue insurance products in your state
Aspect: Main Goal
Insurance Agency: Match you with the best insurance options
Insurance Carrier: Provide the actual coverage and assume the risk
Related Terms
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