Which entity represents the insured in an insurance transaction?

In an insurance transaction, the broker represents the insured, acting as an intermediary between the client seeking insurance coverage and the insurance market. The broker's role is to understand the specific needs of the insured and to find the best possible insurance policies that match those needs.

Brokers search for options and negotiate on behalf of the insured, ensuring they receive adequate coverage at competitive prices. They have a duty to provide unbiased advice and work in the best interest of the client, contrasting with agents who typically represent the insurance company.

Understanding the distinction is important because a broker’s loyalty lies with the insured, making them a crucial advocate in navigating the insurance landscape and explaining various policy options. This relationship allows the insured party to feel more secure, knowing there is someone dedicated to advocating for their interests in the purchasing of insurance.