Do You Need an Insurance Broker?
Carriers protect themselves. Brokers protect you.
An insurance broker is your partner, your advocate, your shield.
Contractors – don’t buy insurance without the help of a broker. You might save a little time upfront, but you’re setting yourself up for bigger costs and risks down the line.
So let’s demystify insurance brokerage. Why do you need one? What do brokers actually do? How do they get paid? And most importantly — what can go wrong if you don’t have one in your corner?
In a nutshell, a broker represents you. We sit on your side of the table, shop your needs across multiple carriers, and make sure the coverage you buy actually works when you need it. Brokers get paid a commission by the insurance company — but that comes out of the carrier’s margin, not your pocket. In other words, it costs you nothing extra to have an expert on your side.
On the other hand, the wrong insurance decision can cost you your business. One exclusion buried in the fine print, one inflated audit, or one denied claim can turn a profitable year into a disaster. Contractors face enough risk on the job site — you shouldn’t also be gambling with your coverage.
Why a Broker, Not Just a Policy?
When you go directly to an insurance carrier, you’re only getting a partial picture. That’s where contractors get burned.
You’re not seeing the full market. One carrier = one quote. A broker brings multiple carriers to the table, compares them, and negotiates on your behalf.
You don’t catch the coverage gaps. Policies are packed with exclusions and loopholes. Miss one, and you’ll only realize it when the claim comes — which is too late.
The carrier represents themselves. Their job is to protect their bottom line, not yours. A broker flips that equation. We exist to make sure you’re protected.
You save time. Some contractors worry that using a broker makes the process slower. The truth is, it’s faster for you. Brokers handle the back-and-forth with carriers, track down certificates, and negotiate terms while you stay focused on running your business.
The difference is simple: a broker works for you, not for the insurance company.
What Brokers Actually Do Behind the Scenes
Those are the big reasons to work with a broker. But what does it actually look like in practice? Here’s what goes on behind the curtain once you bring one on board:
1. We Learn Your Business
Every contractor is different. A GC doing commercial build-outs doesn’t face the same risks as a plumber working in residential homes. We start by understanding your projects, payroll, subcontractors, and operations. This is the foundation of building the right coverage.
2. We Shop the Market
Instead of just calling one carrier, we canvass the market. That means pulling quotes from a range of insurers, comparing premiums, exclusions, deductibles, and audit terms. And because carriers know they’re being compared side by side, they sharpen their pencils.
3. We Read the Fine Print
Every policy is 80+ pages of dense legalese. Buried in there are the traps: subcontractor warranties that void your coverage if you don’t collect certificates within 10 days, residential exclusions that leave you exposed on mixed-use projects, punitive damages carve-outs that won’t protect you in serious accidents. These aren’t hypotheticals — they’re common clauses. Our job is to catch them before you sign, so you’re not left holding the bag.
4. We Negotiate and Advocate
If a carrier tries to slip in an exclusion, we push back. If your workers’ comp audit comes back inflated, we fight it. If you have a claim, we’re the first call you make — and we’re the ones making sure the carrier pays what they should.
5. We Keep You Compliant
Certificates of insurance, additional insured endorsements, project-specific requirements — these details matter. Get them wrong, and your job can stall. We handle that paperwork so you can keep projects moving.
What Happens Without a Broker
Skipping a broker almost always costs contractors more in the long run. You might think you’re saving money, but here’s what usually happens:
You overpay. Without competitive quotes, you’re stuck with whatever one carrier offers.
You’re underinsured. Coverage gaps only become visible after a claim is denied.
You lose time. Chasing certificates and paperwork yourself pulls you off the job site.
Take Mike, a Dallas-area electrician, who bought his general liability policy online to save time. Seemed straightforward enough — until he had a claim on a residential job. Turns out his “comprehensive” policy excluded work in homes built before 1978 due to lead paint concerns. A $50,000 claim that should have been covered became a $50,000 bill he had to pay out of pocket. Since brokers are paid by carriers, you don’t even save money on fees by cutting one out.
The Bottom Line
Insurance isn’t about checking a box or getting the cheapest policy you can find online. It’s about protecting the business you’ve worked years to build. Contractors who treat insurance like a commodity almost always end up paying too much or being underinsured.
A broker changes that. We’re your partner, your advocate, your shield. We handle the details, shop the market, and stand on your side of the table. Our job is simple: make sure your business is protected, and make sure you’re not paying a dollar more than you have to.
At Dragonfly Insurance, that’s what we do every day for contractors across Texas. And that’s why the answer is simple: yes, you need a broker.
