People often interchange the terms ‘Insurance Company’ and ‘Insurance Agency’. It may seem pretty obvious to some, but not everyone knows the difference between the two. Do you need to work with both businesses? Are they completely separate entities? What do they do for one another? We’re here to put to rest any questions you might have.
It’s fairly simple really. Rather than thinking about these two businesses as separate entities, we should look at them as partners. Think of the insurance company, or carrier, as a manufacturer. They are the ones who produce the “product”, in this case the insurance policies. They create and administer the policies and pay claims.
So that would make the insurance agency, or independent agent, the retail store. They are the ones who sell the product that the manufacturer provides. They are the friendly face that maintains contact with customers. Insurance agencies obtain quotes from the insurance companies to present to the customers and assist customers in filing claims with the insurance companies. Unlike a retail business, however, insurance agents are allies, searching for the lowest rates and best policies for each customer’s needs.
Pretty simple right? If you have any other questions you need answered, feel free to give one of our agents a call today!