What’s the difference between an Insurance Broker, Agent or Consultant?
A. An Insurance Broker has no binding authority with the Insurance Carrier and represents the Client. Commissions are usually paid to the Broker by the Carrier as a percentage of the Client’s premium. An Insurance Agent generally has binding authority with the Insurance Carrier and represents the Carrier. Commissions are usually paid to the Agent by the Carrier as a percentage of the Client’s premium. An Insurance Consultant has no binding authority with the Insurance Carrier and represents the Client. Commissions are not paid to the Consultant by the carrier therefore there is no conflict of interest. Consultants are paid by the client on a fee basis – hence full transparency.
