What Is an Insurance Broker?
How a broker shops coverage for the customer, and why that title does not identify the issuing insurer.
What a Broker Does
A broker shops coverage for the customer instead of selling as one insurer's appointed agent. A broker is paid to look for insurance; an agent is authorized to sell by or on behalf of an insurance company. The insurer is still the insurance company on the policy.[1]
Licensing terminology depends on the state. In Wisconsin, brokers, agents, producers and managing general agents are all classified as intermediaries.[2]
What It Does Not Prove
Calling a firm a broker does not name the issuing insurer or move claims-paying duty onto the broker. Access to many markets is not evidence of which company will appear on a given policy.[1]
What to Confirm
Sources
- Glossary of Insurance Terms. California Department of Insurance; Broker: a licensed person or organization paid by you to look for insurance on your behalf; Agent: authorized to sell insurance by or on behalf of an insurance company; Insurer: the insurance company. Accessed 2026-09-21. Source 1.
- Insurance License Types and Fees. Wisconsin Office of the Commissioner of Insurance; An insurance broker, insurance agent, producer, and a managing general agent are considered an intermediary individual; last updated June 1, 2026. Accessed 2026-09-21. Source 2.
