What is the Difference Between an Insurance Agent and a Broker?

As you can probably imagine, the professionals at Grillo & Associates, as leading Long Island insurance brokers, are often asked that question. While the answer is simple, it usually leads to a series of queries and in this posting, we’ll address as many as possible. To get started, the difference between an insurance agent and a broker is what they can do for you. Both insurance agents and insurance brokers can provide guidance when you want to buy an insurance policy. The major difference is that an insurance agent is employed by a single carrier, and represents that company and that company alone. This means you can only buy a policy offered by that one carrier from an insurance agent. Insurance brokers, by contrast, represent our clients, not an insurance carrier. When we are contacted for a business insurance quote, for the Grillo & Associates team, it means the potential to begin a long-term business partnership in that we can help them ‘shop’ for the policies they need from many different insurance companies to make certain they obtain the right amount of coverage and stay within their stated budget.

As your Long Island insurance brokers, Grillo & Associates are specialists in advising our clients about insurance protection. We are independent, which means we are not employed by a specific carrier to only offer that company’s insurance plans. Additionally, our team has years of professional experience and therefore we possess an in-depth working knowledge of the insurance marketplace. Therefore, our advice to our clients and prospects is objective. During every consultation, we help business stakeholders to identify risks to their business, and recommend cost-effective insurance solutions.

While Grillo & Associates is licensed in 18 states, our home base is on Long Island. Commercial insurance in our region must represent a wide range of local industries from pharmaceuticals, manufacturing, technology, real estate, entertainment and hospitality, and even fisheries! As insurance professionals, we understand that each business has its unique set of needs. When our clients are looking for the right policies for their needs at the right price, as brokers we act as intermediaries. In an advisory role, we listen to our prospects’ requirements and recommend certain coverages from different companies to meet them. Our services are especially valuable for business owners and stakeholders whose enterprises face unique risks and challenges for whom a “one size fits all” policy simply will not provide adequate nor affordable coverage.

We are often asked how we are paid. While an insurance agent is a salaried employee of a specific carrier, as insurance brokers, Grillo & Associates receive commissions and fees that are earned through sold policies from each carrier. We know that the process of purchasing the right insurance policy at an affordable premium can be time-consuming, as well as complex for many business stakeholders. That is why we work with business owners in so many different industries here on Long Island. Commercial insurance is second-nature to us and we gladly listen to each of our clients and/or prospects’ needs, then research and present the best options available to enable them to make the right choice.

As leading Long Island commercial insurance brokers, we can provide many different types of small business insurance coverage, including:

General liability insurance
Professional liability insurance (also called errors and omissions insurance, or E&O)
Workers’ compensation insurance
Cyber insurance
Commercial auto insurance
Commercial property insurance
Business owner’s policy (BOP)

Whatever our client’s insurance requirements, the team at Grillo & Associates provides our objective advice solely aimed at satisfying your business’ commercial insurance needs. Doubtless, you have asked your friends and business associates for referrals to a dependable, highly professional insurance brokerage. In all likelihood, our business name was mentioned. For over 30 years our team has assisted thousands of businesses like yours to locate the right coverage for your specific needs. In addition to business insurance, we offer condos, renters, identity theft, flood, cost-effective umbrella coverages, as well as ‘toy’ coverage for your RV, ATV, watercraft, jet skis, and even snowmobiles.

Besides personal insurance policies, we can assist New York State-based businesses with workers comp, general business liability, specialty lines such as inland marine policies, commercial auto liability coverage, and budget-friendly umbrella policies. We invite you to start a conversation that leads to a secure, long-term, business relationship and your total peace of mind. Contact the team at Grillo & Associates today!