What is the Difference Between a Business Insurance Broker and a Business Insurance Company?
Every state including California has insurance laws and statutes which must be followed. These laws apply to any business regardless of size. All types of business entities can benefit from having insurance policies that give them peace of mind.
A business insurance brokerage is a very lucrative career choice. A broker may be an independent agent or they may be employed by an insurance company. Independent agents or insurance brokers are free to solicit and sell whatever types of insurance the client may need. The independent agent can refer clients to any suitable insurer. Price comparisons can be conducted that benefit the client.
There are state licensing requirements in California for business insurance brokerage companies and agents. It is a highly competitive field that can also be financially rewarding. Insurance brokers must have extensive knowledge of Anaheim business insurance policies whether they’re employed by a business insurance brokerage firm or they are independent agents. In most instances only a high school diploma is required to pass the state exam.
The business insurance company may have their own in house agents or brokers. They also welcome referrals and recommendations from independent agents and brokers.
In essence, the business insurance company provides the policies and coverage. These policies cover many areas of liability. Commercial auto and property coverage, general liability and workmen’s compensation insurance are important to large or corporate businesses as well as small business.
Manufacturers and others in the retail fields may require product liability in case of defective product claims.
Riverside California professional liability insurance coverage would be an asset to those in professional areas such as the medical field or cosmetic and hair salon establishments.
General liability policies may include accident, injury or negligence coverage. Policies for coverage of acts of nature such as hurricanes, flooding or tornados and acts of vandalism may be included in general liability or as commercial property coverage.
Brokers and agents provide the clients for the different policies to the business insurance companies.
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