Independent agent

An independent agent is a licensed producer who runs or works for an agency that holds appointments with multiple insurers. The agency, rather than any one insurer, typically controls the customer relationship and the right to renew the business. It is paid commission by the carrier whose policy it places, and some agencies charge fees as well or earn contingent commissions based on results. This is the opposite of a captive agent, who sells for one company or group.

The advantage for a business owner is choice. An independent agent can shop an account across several admitted carriers, compare appetite and terms, and move the account if the incumbent raises rates. The limits are real too. The agent can only quote carriers it is appointed with. A small agency may lack access to specialty or surplus lines markets, in which case it brings in a wholesale broker or managing general agent.

The title "agent" versus "broker" varies by state and by role. In many states a broker is treated as acting for the buyer and an agent as acting for the insurer, though in practice independent agents advise buyers. Ask which carriers the agency represents, how it is paid and who services claims. The guides on independent agent, broker, captive agent or direct? and how commercial insurance brokers get paid cover the differences in depth.