What does brokering involve?

Brokering in the insurance industry refers to the practice of selling insurance policies that are issued by different companies, rather than solely those of a single company. This role is typically performed by independent brokers who are not directly employed by any insurance provider, allowing them to offer a variety of options to their clients. This independence enables brokers to assess the needs of their clients and find the most suitable coverage from a range of available policies in the market.

By contrast, selling policies for a producer's own company would restrict the broker to one company's products, which does not align with the concept of brokering. Managing claims for clients involves providing assistance in the claims process but does not encapsulate the core function of a broker, which is focused on policy sales. Providing legal advice on insurance matters is a role typically held by attorneys and not brokers, who concentrate on facilitating the insurance purchasing process rather than offering legal guidance. Thus, brokering primarily revolves around the sale of various policies from multiple companies without being tied to one issuer.