What a Broker Does for a Small Business
A broker is a licensed insurance professional who helps you find, set up, and keep health coverage for your team. Here is what that looks like in practice.
Compares your options
A broker can look across more than one insurance company for you, so you are not reading each company's offer on your own and trying to line them up.
Handles the setup
From the application to enrollment paperwork to getting your employees signed up, an advisor can take the process off your plate so you can keep running your business.
Stays available after you sign
Questions about a new hire, a claim, or next year's plan do not stop once coverage starts. A broker is someone you can call when they come up.
You can buy coverage without a broker, and some owners do. It mostly comes down to how much of the shopping, paperwork, and follow-up you would rather hand off.
The Rules Depend on the Size of Your Business
Employers with 50 or more full-time employees, including full-time equivalents, face additional ACA requirements, and Pennsylvania, New Jersey, and Delaware each have their own continuation rules for small employers. A broker keeps track of which ones apply to your team, so you are not searching for them yourself.
A Quick Way to Decide
There is no single right answer for every business. See which side sounds more like yours.
A broker may help most if
You may be fine on your own if
If you land somewhere in the middle, that is common. A short conversation with an advisor can help you sort out what you would rather hand off and what you are happy to keep.
Common Questions About Using a Broker
What does a benefits broker do?
A benefits broker is a licensed professional who helps a business find, set up, and keep health coverage for its team. That can include comparing options from different insurance companies, helping with the application and employee enrollment, and being available afterward for questions about claims, new hires, and renewals.
Can I buy small business health insurance without a broker?
Yes. Using a broker is a choice, not a requirement. Employers can shop for coverage on their own, including through options like the SHOP marketplace, and many do. The trade-off is that you take on the comparing, the paperwork, and the follow-up yourself.
Is a broker different from an agent?
The two terms overlap, and both are licensed to sell insurance. In general, an agent may work for a single insurance company, while a broker may represent several. If you are considering a professional, ask which companies they work with so you know how wide a comparison to expect.
How do I know if a broker is licensed?
Ask for their license number and the states where they are licensed, then confirm it with that state's insurance department. Our advisors are licensed to advise clients in Pennsylvania, New Jersey, and Delaware.
I already have a plan. Can a broker still help?
Yes. Many owners bring in an advisor at renewal, when their team grows, or when something about their coverage stops working. An advisor can review your current plan alongside other options and help you decide whether a change makes sense.
Does a broker work with more than one insurance company?
Often, yes. A broker may represent several insurance companies, which lets them compare options for you in one conversation. Ask any broker you are considering which companies they work with, since that decides how many options you will see.
This FAQ is general information about how brokers work, not legal or insurance advice. Every situation is different, so talk with a licensed advisor about yours.
Ready to see what coverage could look like for your team? Explore Small Group Health Insurance or ICHRA plans for small businesses. Still weighing the cost of working with a broker? Read Is It Cheaper to Use a Benefits Broker?
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Disclosures
We are compensated by the insurance carriers for policies you choose through us. There is no direct cost to you. Compensation may vary by carrier and product. Information on this page is for educational purposes and does not constitute legal, tax, or accounting advice. Please consult your professional advisors about your specific situation. We are licensed to advise clients in Pennsylvania, New Jersey, and Delaware. Contact us to confirm availability in other states.
