Skip to Main Content

Have a new policy or recently renewed with us? Manage your account from the new insured dashboard.

Please continue to manage your policy as you have been if you have not yet renewed or if you have a policy with us through one of our partners.

Access Your Account and Helpful Resources

Workers' Compensation

In the realm of insurance, there is plenty of jargon to go around. Do you need to reach out to an insurance agency for workers’ compensation? Or, is it better to reach out directly to a workers’ compensation carrier? To help you navigate your next steps, it is best to learn the difference between the two.

What Is an Insurance Agency?

The terms “insurance agency” and “insurance carrier” are often used interchangeably but are very different. A workers’ compensation insurance agency, often called a brokerage, is responsible for distributing and selling the appropriate insurance to businesses or individuals. They are responsible for providing the service, answering questions, and helping choose a plan that fits.

Agencies can either work for a specific workers’ compensation insurance carrier or be independent, selling work comp insurance plans for a variety of carriers.

What Is an Insurance Carrier?

American Liberty is a workers’ compensation carrier, not an insurance agency. Insurance carriers, often called insurance companies, hold, and manage the insurance policies agencies distribute to businesses and individuals. In other words, carriers create the insurance policy an agent offers.

Understanding the Main Differences Between the Two

Think of it this way: An insurance agency is just like the retail “shop” and the insurance carrier is the manufacturer of the products you can choose from on the shelves. The main differences between the two include:

  1. Responsibility: The carrier is responsible for the claims, pricing, and overall management of the insurance policies. The agency is responsible for selling the products and aiding policyholders with questions and concerns.
  2. Premium collection: Insurance agencies do not accept premiums on behalf of the carrier. Instead, the work comp carrier collects the necessary premiums required by your plan.
  3. Policy changes: The insurance carrier, not the agency, initiates and approves any changes to a policy.

Call American Liberty Insurance Today

American Liberty is a workers’ compensation carrier serving most of the United States. Our goal is to provide an alternative to the rigid, costly environment employers deal with from current insurers. To learn more, give us a call at 801-226-8008 or send us a message.