Who does a broker typically represent in an insurance transaction?

A broker typically represents the policyholder in an insurance transaction. This role is significant because brokers act as intermediaries who help clients find the best insurance coverage tailored to their needs. Unlike agents who may represent one or more insurance companies, brokers work on behalf of the insured to evaluate various policies from different insurers, providing expert advice and guidance to ensure that the client understands the coverage options available.

By prioritizing the interests of the policyholder, brokers can help them navigate the complexities of insurance products and find competitive pricing. They have access to a broader range of insurance offerings, allowing for more personalized recommendations based on the client’s specific circumstances or risk profile. This fiduciary responsibility reinforces the broker's role as an advocate for the policyholder, ensuring that their financial security is the primary concern in the insurance purchasing process.