Our agency takes pride in the services we provide to you. For our efforts, we are compensated primarily by standard commissions. We may also receive additional compensation paid by insurance companies and, in some cases, fees paid by clients. An overview of common compensation arrangements is set forth below.
Standard Commissions – For the majority of the products we sell we are paid standard commissions based on schedules set by the insurance company, and calculated as a percentage of the premium charged. Standard commission percentages vary little among insurance companies and are included as part of the premium that you pay.
Additional Compensation – If the overall volume and loss experience of all the policies that we write with a particular company warrant it, we may qualify for additional compensation, on a basis determined by the insurance company and paid by them. There is no meaningful method to determine the impact that any particular policy has on this type of additional compensation. This type of compensation is factored into the overhead of the insurance company and does not have any impact on the price you pay for insurance.
Fees paid by clients – Occasionally, a fee may be charged for placement of insurance coverage or additional services. Such fees are fully earned and non-refundable. If we charge a fee, we are required to disclose it to you in writing. If the fee exceeds 10% of a directly attributable premium amount of a corresponding contract or policy, we are required to obtain your written acknowledgment of the fee. In addition to a fee, we may receive standard commissions and additional compensation from the insurance company.