What Does Brokerage Mean?
A brokerage, in the context of insurance, refers a company that connects insurers and potential clients to help individuals and businesses find insurance policies that represent a good value for their specific needs. Insurance brokers are often the people who represent the brokerage in this work.
Insuranceopedia Explains Brokerage
Companies often use the services of brokerages because it can be time-consuming to navigate the insurance world to find the best deals on various policies. Oftentimes, these policies can be complex. Thus, hiring a brokerage is often an efficient choice for companies.
Brokerages, of course, charge fees for their services. However, the amount of money that a company pays to a brokerage can pale in comparison to the amount of money it can lose if it accidentally purchases a bad insurance policy or fails to get proper coverage.