Business Insurance Brokers vs. Carriers: Who is Better & Whom Should I Choose?

Thang Truong
Thang Truong
Updated on:

Choosing the right insurance provider is crucial for the financial well-being and protection of your business. The decision between working with a business insurance broker or directly with an insurance carrier can be difficult, as both options offer distinct advantages and disadvantages. This article will help you understand the differences between brokers and carriers, and provide guidance on how to make the best choice for your business.

Understanding business insurance brokers

Business insurance brokers are intermediaries between you and insurance carriers. They work on your behalf to find the best coverage options and prices for your specific needs.

Pros of working with brokers

  1. Access to multiple insurance providers: Brokers can help you find competitive rates and coverage by comparing quotes from multiple insurance carriers.
  2. Expert advice and tailored solutions: Brokers can provide personalized advice and recommendations based on your unique business needs and risks.
  3. Assistance with claims and policy changes: Brokers can help you navigate the claims process and assist with any policy updates or changes.

Cons of working with brokers

  1. Potential additional costs: Brokers may charge fees for their services or receive commissions from insurance carriers, which could increase your overall insurance costs.
  2. Limited control over policy options: Working with a broker may mean you have less direct control over the specific details of your insurance policy.

Examples of situations in which brokers are definitely a better choice

There are some unique examples in which small businesses are definitely better off by working with a broker. 

  1. Niche or specialized industries: If your small business operates in a niche or specialized industry with unique risks and coverage requirements, a broker can help you navigate the complexities of your industry-specific insurance needs. Brokers can leverage their knowledge and network of carriers to find tailored coverage that addresses the unique risks associated with your business.
  2. Businesses with multiple locations or operations in different states: If your small business has multiple locations or operates in different states, you may face varying insurance requirements and regulations. A broker can help you manage the complexity of these requirements and ensure that your business is adequately covered across all locations.
  3. Rapidly growing or evolving businesses: If your small business is experiencing rapid growth or significant changes, your insurance needs may evolve quickly. A broker can help you adapt your coverage to your changing needs, ensuring that your business remains protected as it grows and evolves.
  4. Businesses with complex risk profiles: If your small business has a complex risk profile due to factors such as a history of claims, high-risk activities, or unique assets, a broker can help you find coverage that addresses these challenges. Brokers have access to specialized carriers and can negotiate on your behalf to secure the best coverage and pricing for your unique situation.
  5. Small businesses lacking in-house insurance expertise: If your small business does not have dedicated staff to manage insurance matters, a broker can provide valuable guidance and support. Brokers can help you understand your coverage options, manage claims, and ensure that your business remains compliant with insurance requirements and regulations.

If you see your business in these circumstances, you should seriously consider working with a business insurance broker. Here are the best business insurance brokers that we recommend for your consideration. 

Understanding insurance carriers

Insurance carriers are the companies that underwrite and issue insurance policies. Working directly with a carrier means purchasing insurance coverage without the assistance of a broker.

Pros of working directly with carriers

  1. Direct relationship with the insurer: Dealing directly with the carrier can provide you with a more direct line of communication and quicker access to policy information.
  2. Potentially lower costs: By cutting out the middleman, you may be able to save on broker fees or commissions.
  3. Familiarity with specific products and services: When working with a carrier, you can gain a deeper understanding of the specific insurance products they offer.

Cons of working directly with carriers

  1. Limited options for coverage: Carriers may only offer a narrow range of coverage options, potentially limiting your choices.
  2. Less personalized service: Carriers may not provide the same level of personalized attention and advice as brokers.
  3. Potential lack of industry-specific expertise: Some carriers may not have extensive knowledge of your specific industry, which could impact the quality of coverage recommendations.

Examples of situations in which carriers are definitely a better choice

Below are some examples of situations in which small businesses are definitely better off by working directly with a carrier.

  1. Simple insurance needs: If your small business has straightforward and easy-to-understand insurance needs, working directly with a carrier might be more convenient and cost-effective. In such cases, the added value of a broker’s expertise may not be as significant, and you can potentially save on broker fees by going directly to the carrier.
  2. Familiarity with a specific carrier’s products: If you have previous experience with a particular carrier’s products and services, or you are confident in your understanding of their offerings, working directly with the carrier can streamline the process. Your familiarity can help you make informed decisions without needing a broker’s guidance.
  3. Bundling personal and business policies: If you already have personal insurance policies with a specific carrier, it may be beneficial to work directly with them for your business insurance needs as well. Some carriers offer discounts or incentives for bundling personal and business policies, which can result in cost savings and simplify your insurance management.
  4. Strong relationships with carrier representatives: If you have established strong relationships with carrier representatives, working directly with the carrier may be advantageous. A solid relationship can lead to faster response times, better customer service, and potentially better policy terms.
  5. Carrier-specific loyalty programs or discounts: Some carriers offer loyalty programs or discounts that are only available to customers who work directly with them. If your small business can benefit from these programs, it might make more sense to bypass a broker and deal directly with the carrier.

In each of these situations, small businesses might find it more beneficial to work directly with an insurance carrier. However, it is essential to carefully assess your specific needs and circumstances before making a decision, as individual experiences may vary.

Factors to consider when choosing between brokers and carriers

When deciding between working with a broker or directly with a carrier, consider the following factors:

  1. Your business’s unique needs and risks: Evaluate the specific risks and coverage requirements associated with your business and industry.
  2. Industry-specific requirements and regulations: Some industries may have specific insurance requirements or regulations that necessitate specialized expertise.
  3. The complexity of your insurance needs: If your business has complex insurance needs, a broker may be better equipped to provide tailored advice and solutions.
  4. Your preference for personalized service and support: Determine whether you value the personalized service and support that brokers can provide.

Tips for making an informed decision between brokers and carriers

To make the best choice between a broker and a carrier, follow these tips:

  1. Research both brokers and carriers: Investigate the reputation, services, and coverage options offered by both brokers and carriers.
  2. Seek recommendations from peers and industry associations: Consult with other businesses in your industry to gather insight into their experiences with brokers and carriers.
  3. Evaluate the reputation and track record of potential providers: Consider the provider’s history of claims handling, customer service, and industry expertise.
  4. Consider your long-term insurance needs and goals: Determine whether a broker or carrier is better suited to help you achieve your long-term insurance objectives.


When choosing between a business insurance broker and a carrier, it’s essential to carefully consider the specific needs and preferences of your business. Both options have their advantages and disadvantages, with brokers offering personalized advice and access to multiple carriers, while carriers may provide a more direct relationship and potential cost savings. By assessing your business’s unique requirements, conducting thorough research, and seeking recommendations from others in your industry, you can make an informed decision that best suits your business’s insurance needs. Remember that the right choice will depend on your specific situation and priorities, so take the time to carefully evaluate your options before making a decision.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

9 Best General Liability Insurance Companies for 2024

General liability insurance is probably the most popular business insurance that almost all businesses should have. It is required for some professions such as construction. The good news is that many insurance companies offer this product, so it is easy to find one that is the best for your business. In our intensive research, here […]

9 Best Commercial Auto Insurance Companies & Quotes in 2024

If you use your vehicles for work, you need to get a commercial auto insurance policy. Your personal auto insurance policy won’t cover the vehicles when you use for business. Commercial auto insurance is necessary when cars, trucks, or vans are used to conduct business. We cover everything you need to know about commercial auto […]

The 5 Best Business Owners Policy (BOP) Insurance for 2024

A Business Owner’s Policy (or BOP Insurance) is important to any small business to cover potential damages and losses when unexpected events happen. A BOP policy includes the coverages of general liability, commercial property, and business interruption in one master policy. If a small business can only afford one insurance policy, it should be a […]

11 Best Professional Liability Insurance Companies for 2024

If you’re a small business and in the market for professional liability insurance, below are 11 best companies offering this type of insurance for small businesses. In order to get an idea of the prices where online quotes were offered, we looked at a hypothetical accounting business in Wisconsin that had been in business for […]

Milepost Joins Truckstop: A New Dawn for Commercial Truck Insurance

The trucking industry is about to witness a significant shift in how insurance policies are procured, managed, and serviced. Milepost Insurance Agency LLC, a renowned Berkshire Hathaway enterprise, has recently collaborated with Truckstop, thereby pioneering a new era in trucking insurance for independent owner-operators. Revolutionizing the Insurance Experience The primary aim behind this dynamic partnership […]

Navigating Commercial Truck Insurance Premiums in 2023

Commercial truck insurance has become a focal point for many in the transportation sector as we delve deeper into 2023. With premiums seeing significant spikes in recent years, stakeholders are asking: Are we approaching a stabilization or even a decrease in these rates? Insights from industry experts provide clarity on this critical concern. Trends in […]

Regulatory Changes and Rising Commercial Truck Insurance Costs in California

In the wake of the passing of California’s AB5 bill, the trucking industry, including drivers and insurers, face unforeseen challenges. The legislation threatens to severely disrupt contractual trucking gigs, leading to rising insurance costs and potential operational changes. AB5 – A Potential Setback for Owner-Operators AB5, signed into law by Governor Gavin Newsom in 2019, […]

Finding Balance in Commercial Truck Insurance: Costs, Value, Services, and Long-Term Benefits

Navigating the maze of truck insurance offerings is not just a matter of finding the lowest price. It’s about understanding the nuances of what you’re buying, considering long-term benefits, and ensuring a harmonious relationship with your provider. This article offers a detailed examination of the process, unfolding the aspects of costs, value, services, honesty, and […]

New SEC Regulations on Cybersecurity and AI: A Comprehensive Overview

In an era where technology is at the forefront of business operations, the U.S. Securities and Exchange Commission (SEC) is taking decisive steps to ensure transparency and ethical practices. On Wednesday, the SEC was set to introduce new regulations that will impact publicly traded companies in two significant areas: cybersecurity and artificial intelligence (AI). These […]

6 Best Malpractice Insurance for Nurse Practitioners for 2023

Nurse practitioners have a great deal of responsibility when it comes to patient care. Many nurse practitioners assume that because they work under a doctor and their employer provides some level of malpractice insurance, they’re covered. It may be worth it to purchase your own policy, however. Employer malpractice insurance is to protect the employer, […]