A commercial insurance broker is a person that quotes and sells policies for many different insurance companies. When a customer purchases a commercial insurance policy through a broker the broker gets a commission for the sale of the policy.

The broker for commercial insurance policies will generally work at a brokerage that employees many brokers but there are instances where the person can be an independent commercial agent; however, it is a lot more rare to see that in the commercial field than in the personal lines insurance brokers.

Job Details

The job of a commercial insurance broker is one that is more than just finding a policy that is good for the business. Although this is the eventual end goal there is a lot more to it than that.

The job of a commercial insurance broker involves doing an assessment of the needs of the business and then taking the information and finding several different options that are going to be a possible fit for those needs. The broker needs to be sure that the policies offered are all good fits for the different risks that the business is going to face along with giving the best possible premium price for the best possible coverage.

Being a commercial insurance broker means taking many skills and putting them into the one job. As a commercial insurance broker you’re a salesperson and need to work on forming a strong bond and relationship with your clients. With being a broker you also serve a little like an underwriter in the regard that you need to assess risk in order to determine the best market in which you’ll find a suitable policy.

Broker and Agent and the Insurance Company

The insurance company relationship is one that is much different for the broker then for a regular insurance agent.

An insurance agent usually is bound by a contract to the one insurance company to sell policies for that company only.

The broker has no contract with any one insurance company. Rather than representing a company they represent the client so they have ever more of a vested interest to make sure that their client gets the best possible policy.

The Thin Line – Understand Your Client and Boundaries

With the differences of the agent and the broker the broker must take great care as they are somewhat straddling the line between their client and the insurance company. The broker could have very privileged information that could harm the by leading to them not being able to purchase the insurance policy; however, on the other hand they need to make sure that the insurance company has all of the information that they need in order to make a good risk assessment decision when deciding to grant a policy and determine the premium for a policy. While walking this line they need to make sure they are able to secure an affordable and comprehensive plan for their client.

Knowledge Is Essential

When you’re a commercial insurance broker, more above any other, it’s essential that you understand the business of the client and the industry knowledge in general as well. You need to make sure of the products offered at all of the insurance companies that you do business with.

Should the broker look over a risk that should have had coverage then the broker him/herself could be responsible for the unrecoverable loss. Though the decision is one that ultimately lies in the hands of the client they look to the broker for advice before they purchase any insurance policy.