Why Use an Independent Insurance Agency?

Recently, there has been a growing appreciation of buying directly. Farm to table restaurants are popping up everywhere. It makes sense a certain amount of sense. Just eliminate the middleman and buy directly. You will know the wholesaler and the background of the product. In some cases, this is a great approach. However, when it comes to insurance, there is another side of the story you should consider. Should you buy directly from the insurance provider (and eliminate the middleman) or should you go through an agent? This article will help clarify the differences between the two and the advantages of using an insurance agency.

What is an Independent Insurance Agency?

Basically, an independent agent is not limited to selling insurance from one insurance provider. They are able to sell from many different providers. A “captive agent” is limited to selling from one provider which employees them. The independent agent will gather information from several different agencies before helping the purchaser choose the right option for their specific needs.

Duties of an Independent Agent

Independent agents can be thought of as retailers. Retailers buy from several wholesalers to provide choices for customers. Likewise, an independent agent is able to sell from many providers. It’s important to understand that the insurance agent is more than just a salesperson. They are actually your legal representative (hence, your agent) to the insurance provider. An agent must be licensed by the state and has the fiduciary responsibility to advocate on your behalf. They are legally required to put your interests before either their own or the interests of the insurance company. When you need to make a claim, it can be very handy to have an expert in your camp.

Advantages of an Independent Insurance Agency

There are many advantages to having an independent insurance agent. Having an agent means you have someone on your side during a claims dispute. However, it’s more than just having expert help. If you do not have an agent, you have bypassed the opportunity to have a licensed, regulated, and insured fiduciary. You are essentially taking full responsibility for decisions you make regarding your coverage. If you were to make a mistake, you would be fully responsible. With an agent, you have a safety net for any mistakes or oversights. The agent is seen as responsible for avoiding these. Additionally, an agent will help gather information from several different companies. They do the homework and research for you. This can save a whole lot of time and headache when shopping for insurance.

Independent insurance agencies are, by definition, your fiduciary. However, not every agency takes that responsibility with the same weight. At H&K Insurance, we understand what it means to have a licensed, insured, trustworthy agent to help you understand and navigate the insurance world. In addition to our specialty insurances, we offer home and auto insurance. Our expert team will be thrilled to help you through the process of finding the insurance coverages that are right for you and your family. Be sure to contact us for your next insurance needs.