Nonprofit Insurance Explained: Insurance Carrier vs. Insurance Broker

a handshake between agent and consumerWhat your nonprofit should know about an insurance carrier and an insurance broker.

Do you know the differences between an insurance carrier and an insurance broker? If you don’t, you’re not alone. Many nonprofit owners don’t understand the difference between a broker and an insurance carrier, often using these terms interchangeably. To help you find and maintain the right coverage for your nonprofit organization, here’s what you should know about an insurance carrier and broker.

Insurance Broker

An insurance broker is someone who buys and sells products on behalf of another. He or she is someone who acts on behalf of their client, called an insured, to assist them in finding the right insurance coverage from an insurance carrier. The broker is someone who specializes in insurance and risk management, whose role it is to help their insured nonprofit secure the right policies to mitigate the financial loss of claims.

Insurance Carrier

An insurance carrier, also called an insurance provider or an insurance company, is the financial resource behind the coverage provided in an insurance policy. It is the issuer of the policy and the one who charges the premium and pays for losses and claims covered under the policy. In return for the premium, the insurance company pays the insurer for certain financial losses due to various covered claims’ scenarios.

Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.