An independent insurance agency or broker is one who works independently from the company they represent. An independent agent or broker may represent a variety of companies, such as life and disability insurance companies, health insurance and medicare, property and casualty insurance companies, public accounting firms, other independent agents or brokers, and even their own company. Independent agents are typically small business owners with a passion for insurance who choose to work outside of a larger company structure. Working as an independent agent provides you access to many different types of insurance products for your clients that you may not have access to if you were to be inside of a larger organization pursuing the same niche market target client base. Working as an independent agent also gives you more flexibility than operating within a company structure because you can make changes in your business at any time without having to wait until the end of the year when budgets get finalized for new programs, and staff members are hired. It also gives you more personal freedom to pursue your interests outside of working within a company because there’s no one else telling you what needs to get done within that company in order for it to succeed.
One of the greatest benefits of being an independent agent or broker is the ability to represent multiple companies. Independent agents and brokers have access to a wide range of insurance products that can be marketed to customers as they are more likely to trust an agent that represents their interests. This also helps them build a stronger relationship with their customers, which ultimately leads to them getting referrals from those customers, which can lead to even more business. Another benefit of an independent agent or broker is the ability to work for themselves, set their own hours, and determine their own workflow. You are able to pursue your interests in your own time because you aren’t tied down by company policies and procedures. This allows you to be as efficient and effective within your business as possible without having any limitations on how much work you can do each day or what type of work you are doing, for that matter.
Independent agents or brokers are local businesses and part of the community. They are often part of a network of other independent agents who give each other support when it comes to marketing or promoting their own business. Independent agents are also able to stay in touch with their customers and clients on a personal level because they’re not tied down to a larger company structure. Independent agents can also provide more personal service to their customer base because they have greater flexibility as independent agents than if they were a captive agent. Captive agents are tied down to one specific company and must abide by different management rules and policies.
Many people get confused about the difference between an independent agent and a captive insurance agent. An independent agent is a type of broker who represents multiple companies, while a captive agent works for just one company, often inside a larger organization. There are different types of independent agents, for example, life and disability agents, health insurance, Medicare, risk management agents, general property and casualty agents, public accounting firms, other independent agents or brokers, and even their own companies. Independent agencies must work within the constraints of their company structure in order to succeed. This can limit what your business can do within that structure through a lack of resources or limitations on how you progress within that structure. For example, if you wanted to offer health insurance plans to your customers but were limited by your company structure because it doesn’t currently offer those types of plans and only offers auto insurance as its primary product line - you would be unable to pursue that goal with your company.
An independent agent is able to find the perfect insurance policy for you at the best price. The business that an independent agent represents will typically sell a few different types of policies and offer them to their agent, who is then able to search through these different policies and find the one that’s right for you. This process allows the independent agent to be more flexible with what they can offer you because they don't have to worry about being limited by what's available from the company they represent. In addition, as an independent agent, you're not obligated to keep continuous personal relationships with your insurance company which could lead to potentially delayed payment on claims or higher premiums. Working as an independent agent also has less overhead than working inside of a larger corporation because there aren't employees taking up space in your office and paying rent on it while they work part-time or just a couple of hours each week. It also allows you to save money on advertising expenses, such as creating ads in magazines or publications and sending out mailers, by only having those expenses associated with your website since other potential advertisements are already being paid for by your client.
Finding the best local independent insurance agent is not a difficult task. It’s just important that you know what questions to ask and what information you need in order to make an informed decision. You should also be aware of your own personality type, as well as the personality type of potential agents that you interview. For example, it may not be in your best interest to interview a sales-oriented agent because you might find the process too time-consuming. Or maybe it would be better for your business to work with an agent who’s more knowledgeable about certain areas of insurance, like property or casualty insurance. The key is asking yourself what kind of agent will work best for your business and then following through with those interviews to find one who will make your business successful.