Captive Agent vs. Broker: What’s the Difference?

To pick the right insurance company for your specific business needs, it’s important to understand the different types of professionals that make up the insurance industry. Largely, there are two kinds of business insurance professionals: agents and brokers.

An insurance captive agent works for one insurance company and is only able to sell that one insurance company’s products. These individuals can be very knowledgeable about their specific carrier, but they are limited in the premium prices and coverages they can offer you. It also means their loyalty lies with their insurance company and not necessarily with what might be best for you as a customer.

An insurance broker, like Pearl Insurance, works with many different insurers and can offer policies for a wide range of purposes and businesses. Also, in some states, brokers are required by law to maintain a higher duty to their clients’ needs, which means they thoroughly analyze the businesses they serve and strive to find coverage that will help the company succeed.

Knowing the difference will help you select the right insurance company for your specific needs.

dantharp-photoDan Tharp is licensed in all states (except Alaska & Hawaii) and is the Vice President of Business Insurance Lines for Pearl Insurance. Dan has been assisting business owners in protecting their operations, customers, and employees for over 30 years. For questions regarding this blog post or any other insurance matter, he can be reached via phone at 800.447.4982 or email at

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