What Are Captive Agents?

What makes a Captive Agent different from an Independent Agent? Is there nothing in-between a Captive and Independent Agent? Are there any advantages or disadvantages to being a Captive Agent?

Captive Agents occur when an agent can only sell insurance from a single carrier. Their ‘captivity’ is contractually bound in order for them to be able to represent that carrier. In exchange for only being able to sell for the one carrier, the carrier will often help pay for some of the operating expenses of the agent and more, such as mentoring the agent, training their new sub-agents, advertisement expenses, creation and implementation of marketing items, signs, and more. The Captive Agent can typically advertise however he or she wants, as long as everything mentions the carrier or has the logo and/or name of the carrier on them.

So a Captive Agent has only one carrier it can sell products from. The next step up from a Captive Agent is a semi-Captive Agent, who is contractually bound to quote every new person/entity with the semi-captive-carrier, but can then seek other markets if necessary. The top tier is the Independent Agent, who can quote anyone they want with any carrier they have.

What are the benefits of being a Captive Agent?

All of the extra perks captive-carriers offer often lures in agents that are just starting out. Starting from scratch is made a lot easier with carrier-provided sales managers/mentors, advertising materials, and other expenses that they’ll pay for. Another benefit of being a Captive Agent is that they only have to know the ‘ins and outs’ of one carrier’s insurance policies.

What are the draw-backs of being a Captive Agent?

Each carrier has specific markets that it targeting with its products, so trying to sell to someone outside of the carrier’s niches is often hard to do. Along with that, having only one company to quote with can create a conflict of interest: if a prospect needs a coverage that the captive-carrier cannot provide, the Captive Agent will either have to tell them to look elsewhere for insurance, or downplay the necessity of that coverage to keep the prospect. This can often sacrifice quality and breadth of the insurance coverage. Furthermore, having only one carrier to sell from limits the options they can provide a client.

What about semi-Captive Agents?

Being a semi-Captive Agent is the middle ground between Captive and Independent. Semi-Captives get some of the perks that fully Captive Agents get, but it also creates extra headaches when they try to quote outside of the semi-captive-carrier: if the carrier finds out that the agent didn’t quote with them first, the carrier might sue or drop the agent for a breach of contract. Also, having to quote with the semi-captive-carrier on every piece of business takes up valuable time, especially when the agent know that the semi-captive-carrier won't be competitive.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

The Independent Agent—America’s Best Kept Secret

What makes someone an independent insurance agent? What does it matter to individuals and businesses? What are the benefits? Are there any drawbacks?

An Independent Agent, or in our case, an Independent Agency, is an agency that is not bound to a single company. For example, Copple Insurance Agency has contracts with many companies, including but not limited to: the Cincinnati Insurance Companies, CNA, General Casualty, Bituminous, Progressive, Met Life, and so on.

Having a multitude of companies to choose from is a huge benefit for our customers! We are not forced to sell from only one company. This allows us to choose the right company for each situation.  By giving us a few pieces of information, we can give multiple quotes on each line of insurance, and select the policy that has the right coverage at the best value.

Being an Independent Agency, we strive to provide stellar customer service. Our clients know that when they need us, we’ll be there. They also know that when they call in, they will be talking with a real person that cares about them.  We also strive to create a lasting relationship with our clients. In fact, we would rather call them our friends and partners. So, our friends know that they can count on us to be honest, dependable, and caring for them. You don’t have to take our word for it though, click HERE to see what they are saying about us online!

We are a one-stop-shop; we can take care of your Homeowner’s, Automobile, Personal Umbrella, Boats, Aircraft, and Valuable Property insurance. We can also take care of all of your business’s insurance too: Property, General Liability, Commercial Umbrella, Worker’s Compensation, Commercial Auto, Inland Marine, Professional Liability, Bonds, and more! Just think about how convenient it could be having all your insurance with the same agency you know and trust!

As Independent Agents, we take a consultative approach to insurance. We believe insurance is not a commodity, and needs to be respected for the intricate creature it is. That’s why we explain what we're selling, because an informed buyer is the best buyer. We are committed to selling you only what you need, and have years of experience in finding coverage gaps and other potential pitfalls. We also offer risk management through the companies we represent and in-house methods. Everything we do is to create a better experience for our friends and partners.

If you've never heard of an independent agent, that’s because we don’t have multitudes of television, radio, online, billboard, and print advertisements constantly reminding you.The independent agent typically relies heavily on word-of-mouth to find him or her new clients. 

So if you’re not already with an independent agency, consider giving one a chance the next time you’re looking for insurance. You might just be pleasantly surprised what your hometown-agency can offer. If you are already with one, tell a friend—let them know what they've been missing!

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.