As a consumer, it is important to understand the distinctions between the two. In short, Captive Workers’ Comp Insurance Agents (like State Farm, Farmers, Allstate, and AAA) are contracted to work for the one insurance company they exclusively represent and can only sell that company’s insurance policies. In theory, the client is limited to only one option to choose from.

On the other hand, Independent Workers’ Comp Insurance Agents, like PIA Select Insurance Solutions, are contracted to work with a wide variety of “A Rated” insurance companies. With this way of conducting business, we function as an advocate for our clientele and offer them multiple options to choose from. This places us in a position of negotiating power because we are not trapped representing just one insurance company.

There are a wide variety of reasons why you would choose an Independent Insurance Agent vs. a Captive Insurance Agent. One of the main reasons is cost. Collaborating with an independent agent will usually be more cost effective for you than collaborating with a captive agent. Simply because an Independent Agent has a wide variety of options for you to choose from and a Captive Agent usually just has one.