Compensation Disclosure

Embroker takes pride in providing services to our clients and partners and believes you should understand how we are paid for these services. The use of Embroker’s software is free. However, for providing insurance services, Embroker is compensated in a variety of ways. 

Below is a summary of the types of compensation Embroker may receive, and based on the insurance product and services, one or more of these combinations arrangements may apply:

Commissions

Embroker receives usual and customary commissions or fees for the distribution and servicing of insurance policies. Commission amounts are typically calculated as a percentage of the premium paid to the insurer for a policy, although it may vary depending on several factors, including the type of insurance product sold and the specific insurer. 

Contingent Commissions

Embroker may also receive income through contingent commissions received from insurers because we have achieved certain criteria, typically measured on an annual basis. The criteria vary, but are usually the result of attracting new customers, retaining existing customers, achieving certain loss or claim results or assisting the insurer with the underwriting process. Because the amount of contingent commission earned may vary, there is generally no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements.

Supplemental Commissions

Certain insurance companies pay supplemental commissions – fixed amounts – that are based on Embroker’s performance during the prior year. These commissions are established annually, and the criteria for supplemental commissions are similar to those for contingent commissions. Unlike contingent commissions, the amount of supplemental commission is known at the time of insurance placement.

Client Fees

Embroker may, on occasion, negotiate a fee for services in lieu of, or in addition to, commissions paid by insurance companies. These fees may include, but are not limited to, subscribing, policy handling and consulting fees. These fees will be approved, usually in writing, prior to binding coverage. Embroker may also be engaged to provide consultation to clients under specific agreements for services for which a fee will be paid. 

Other Benefits or Compensation

In addition to such commissions or fees for services, Embroker may receive investment income on fiduciary funds temporarily held by it, such as premiums or return premiums.

From time to time Embroker may be compensated by insurers for providing administrative services to clients on behalf of those insurers. Such amounts are typically calculated as a percentage of premium or are based on the number of insureds. Insurers may also compensate Embroker for providing underwriting, marketing, or other support. Embroker may also participate in insurance company promotional events, training, or development that insurers provide to Embroker employees.

Miscellaneous Fees

Embroker may charge permitted servicing fees for various billing options. Embroker may also receive direct or indirect compensation from parties related to other aspects of its operations or services.

Please feel free to ask Embroker about our compensation generally or your specific proposal or placement.