What does an agent's fiduciary duty entail?

An agent's fiduciary duty involves a commitment to act in the best interests of their clients, which is essential in the insurance industry. This relationship is built on trust and requires the agent to prioritize the client's needs and welfare above their own. This includes providing unbiased advice, acting with integrity, and ensuring that clients are well-informed about their options to make educated decisions about their insurance coverage. By fulfilling this duty, the agent maintains the ethical standards expected in the profession and supports the overall welfare of their clients.

In contrast, managing one's own interests, while important in any business, would conflict with the obligations of a fiduciary duty, as it would not serve the client's best interests. Offering the lowest premiums available may not necessarily align with the best coverage or value for the client, which is a critical consideration beyond just cost. Lastly, creating policies without client input undermines the collaborative nature of the agent-client relationship and may lead to coverage that does not meet the client's needs or preferences.