Many clients ask me: What type of agent do I need and where do I find them. There are three types of insurance agents in most states. These are: Exclusive agents, direct writing agents and independent agents. Here are general descriptions. Exclusive agents write for one company such as Allstate or State Farm. They cannot by contract place business with another company. These agents write a large portion of what is called personal lines insurance that is homeowners or personal auto. Direct writing agents are employees of the insurance company and generally are paid a salary in lieu of commission. Wausau Insurance Companies utilize this system as does Liberty Mutual. These agents can write both commercial and personal insurance. The last category is the independent agent. This agent works on commission and can represent numerous insurance companies. They can write both personal insurance and commercial or business insurance. Currently about 55% of all commercial insurance in the United States is written by independent agents. Next; Where do find them. I recommend utilizing friends and associations if you are a member. Using the Yellow pages is really like shooting dice. You don't know what you are going to get. Remember some agents specialize in small businesses while others will not touch a small business. You need to ask direct questions of any agent you might consider. How long have you been in business and can you supply references in the area. If you need additional help please contact me.
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