Insurance Company / Provider Definition

The "Legal-Ease" Glossary
Insurance Company / Provider

This refers to entities that provide insurance to businesses and individuals. Sometimes, these companies are called “insurance providers” or “insurance carriers.”

In order to sell policies to the public, insurance companies may hire exclusive insurance agents, contract with insurance agencies like insureon, or both. Though your agent can certainly advise you on which policies address your risks and needs, they don’t actually write the policies. The insurance company employs underwriters who create the legally binding insurance contracts.

Your provider really does impact your coverage. That’s because…

  • Different carriers specialize in different kinds of insurance. Some carriers only provide personal insurance lines, while other offer commercial coverage.
  • Some carriers may not be financially solvent. To check the financial strength of your provider, you can use rating sites such as A.M. Best or Fitch Ratings. An “A” rating usually denotes a financially-sound institution. (Worth noting: insureon only works with top-rated providers.)
  • Some carriers won’t insure small businesses or one-person operations. Even if the carrier does cover small businesses, it may not offer coverage for niche industries.

Insurance can be confusing, which is why it’s helpful to purchase your coverage with the help of an insurance agent. An independent agent has access to multiple carriers, which gives you more options to choose from. And if the agent has experience insuring other businesses in your line of work, they already know the industry-specific packages available to you.

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