How do I choose an insurance broker?

Start by deciding whether you need an independent broker, who works with multiple insurers, or a captive agent, who sells for one company. Brokers represent you rather than the insurer and cannot bind coverage; an agent or the company must complete the sale. Brokers typically earn commissions of 2% to 8% of the annual premium and may also charge fees for consultative services, which states allow only when they are reasonable and agreed with the client, so ask up front how the broker is paid.