What is an insurance broker? (and other ways to buy business insurance)

An insurance broker is an intermediary who works between the client and insurance providers to help clients find the right insurance policies for their needs.  

Brokers’ activities are regulated by the Financial Conduct Authority (FCA). Either the firm itself will be directly regulated, or the broker will be an appointed representative of a regulated company. It’s their job to provide trusted information to help clients review their options and choose tailored insurance.  

This guide will help you understand the role of an insurance broker, how it differs from price comparison websites, agents, and direct insurers, and key things to consider when buying insurance.

What does an insurance broker do? 

Insurance brokers provide a range of services that usually go beyond just finding a quote for a new insurance policy, which can include:

• providing information on different insurance products 
• explaining how different covers match to your risks
• arranging new policies, making changes mid-term, and supporting renewals
• helping you when you make a claim

Brokers are typically paid a commission if a client buys a policy with one of their insurers. Some may also charge a fee. They must tell you how they get remunerated for their services.

Types of insurance brokers

A significant distinction is whether the broker’s service is advised or non-advised. 

Type	What you get
Advised broker	A personal recommendation after assessing your business risks
Non‑advised broker	Information and product options without a recommendation

Advised brokers

Advised brokers recommend a policy. They can provide a personal recommendation about which insurance policies and covers to buy. They do this by assessing your needs and  business’s risks, and then looking at a range of insurance options to give you a recommendation.

Non-advised brokers

Non-advised brokers don’t give advice. They’ll only provide information and don’t give any advice or recommendations about which cover to buy. They’ll ask questions to help you narrow down the insurance options available to you and give you information about each one. It’s then up to you to decide which policy or covers to buy. 

The number of insurance providers they work with can vary significantly, from just one up to a wide range of market providers (each broker will make clear how they do this). 

Insurance broker vs another route – what’s right for you? 

Your risk level as a business and what level you’re personally comfortable with all play a role in how you choose to buy insurance. This is something you’ll decide.

For example, if you have a highly complex business with many different income streams then you might choose a broker to discuss your options with. If it’s a non-advised broker (as explained above) then they’ll be able to talk you through possible risks with your type of work but won’t be able to make specific recommendations for you. 

If you’re a sole trader with straight forward liabilities then you might decide to organise insurance online yourself without needing to discuss it with an expert. Or you might still want to talk it through with a broker to get more information and to help you understand covers and options.

How do brokers work? 

You can access an insurance broker’s service online, by phone, and sometimes face-to-face (or a mix of all three). Brokers will confirm whether their service is advised or non‑advised, and can explain the range of insurers they work with.

What are the other ways to buy business or landlord insurance?

You can also buy insurance directly with an insurance company, through an agent, or by using a price comparison website. We explain a bit more about each one below. 

Channel	What it is	Pros	Cons
Direct insurer	Buy straight from one insurer	Simple journey, single point of contact	Only that insurer’s products
Insurance agent	Represents one insurer	Personal service	Limited choice, less common now
Price comparison website	Compare quotes in one place	Quick to see a range of products and prices	You won’t see every product on the market

Direct insurers 

Direct insurers  sell policies directly to customers without using brokers and intermediaries. They’ll usually look after everything after you’ve bought your insurance too, for example if you need to make changes to your policy, renew, or make a claim. They usually only sell their own products, which means you can’t get quotes from other insurers.

Insurance agents 

Insurance agents are much rarer than they once were due to the shift to brokers and direct insurers in recent decades. They usually represent one insurance company and only offer their products. 

Price comparison websites

Price comparison websites (PCWs) for home and motor insurance typically show quotes from multiple providers. They’re used to compare prices but you then buy directly from the insurer and manage the policy with them, not the comparison site.

However, price comparison websites for business and landlord insurance normally partner with a third-party company to provide quotes from a range of insurance providers. So the experience and options you have is with the third-party intermediary, a regulated company that can power the quote infrastructure for the PCW. 

How do you check if a broker or insurer is FCA-authorised?

In the UK, the activities of business insurance brokers are regulated by the Financial Conduct Authority (FCA). Under FCA rules, brokers either offer an advised service (where they recommend a specific policy) or a non-advised service (where they give you the facts so you can choose yourself).

The Financial Services Register 

All legitimate UK insurance providers must appear on the Financial Services Register managed by the Financial Conduct Authority (FCA). Follow these three steps to check an insurer or broker is registered:

• Check that an insurer is listed on the Financial Service Register.
• Search by the firm’s name or firm reference number.
• Confirm they hold permissions for “arranging” or “advising on” general insurance contracts.
• The firm will either be directly authorised by the FCA or will be identified as an ‘Appointed Representative’ of a directly authorised firm (who will be the ‘Principal’ responsible for their activities). 

What do you need to consider when choosing business or landlord insurance?

When deciding whether to use a broker for your business or landlord insurance or go for a direct insurer, agent, or price comparison website, these are some questions you might want to ask yourself: 

• trade understanding – do they have experience with your specific industry or niche?
• panel breadth – how many different insurers do they compare?
• service type – is the service clearly marked as advised or non-advised?
• ongoing support – will they assist with mid-policy changes and claims handling?

Final thoughts – which route is best for your business?

Brokers, agents, direct insurers and comparison sites all have their place when it comes to researching the best business insurance option for your needs. Which one you choose depends on your business and what’s important to you – whether that’s price, convenience, simplicity, or advice. The information in this article could help you decide which options to choose.

This article is intended as a guide. It’s always best to speak to an expert if you’re not sure of anything.

FAQs about insurance brokers

Do brokers cost more?

Brokers are usually paid by commission from insurers. Some may also charge a fee, which they must tell you about before you buy.

Are insurance brokers regulated?

Yes. Brokers operating in the UK must be authorised and regulated by the Financial Conduct Authority.

What’s the difference between a broker and an agent?

A broker can access multiple insurers. An agent represents a single insurer and sells only that insurer’s products.

Can a broker help with a claim?

Yes. Many brokers support customers through the claims process and liaise with the insurer.