Insureon, a Division of SPECIALTY PROGRAM GROUP LLC (“SPG”, “we” or “us”) does business with multiple insurance companies and normally can offer you a variety of coverage choices. As a result, we can assist you in securing the combination of coverage, price, and service that best fits your needs. The means by which we are compensated are described below:
Commission Income - Commission, normally calculated as a percentage of the premium paid to the insurer for the specific policy, is paid to us by the insurer for the distribution and servicing of your insurance policy. Our commission is included in the premium paid by you. The individuals at Insureon who place and service your insurance may be paid compensation that varies directly with the commissions we receive.
Contingency Income - We also receive income through contingency arrangements with most insurers. They are called “contingent” because to qualify for payment, we normally need to meet certain criteria, usually measured on an annual basis. Contingency arrangements vary, but payment under these agreements is normally the result of growing the business by attracting new customers, helping the insurance company gather and assess underwriting information, achieving certain loss or claims results, and/or working to renew the policies of existing insureds. There is generally no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements; however, brokers tend to receive higher contingency payments when they grow their business and retain clients through better service. In other words, the amount of earned contingency income depends on the overall size and/or profitability of a group of accounts, as opposed to the placement or profitability of any particular insurance policy. For this reason, the individuals involved in placing or servicing insurance are rarely, if ever, compensated directly for the contingent income that we receive.
Supplemental Commissions - Some insurance companies have recently replaced contingent commissions with supplemental commissions. These commissions, in fixed amounts, are established annually in advance based on historical performance measured by criteria comparable to those by which contingent commissions are calculated. We refer to these commissions as guaranteed supplemental commissions, or “GSCs”.
Fees Paid by Clients - Fees charged for the placement of insurance will be outlined in a proposal and approved, usually in writing, prior to the insurer binding coverage. On occasion, we may receive both commissions and client-paid fees for placing insurance, which generally will be disclosed in writing to you in advance.
Technology Service Fee - In certain states where permitted, Insureon may charge a Technology Service Fee. This fee supports the digital platform and services we provide, including: secure processing of applications and payments, access to multiple insurance carriers and coverage options, efficient policy management and servicing, and rapid issuance of documents such as certificates of insurance. Any applicable Technology Service Fee will be clearly disclosed prior to binding coverage.
Carrier Services - Insureon gathers and analyzes data about our customers’ insurance needs and about current and future insurance market conditions. This data helps us better serve our customers’ needs and anticipate future developments. Insureon may provide this data on a de-identified basis to insurers pursuant to consulting services agreements, to enable them to competitively tailor their products, and Insureon receives fees pursuant to such agreements.
Other Compensation and Benefits - We may receive revenue or further benefits from our insurance brokerage activities in other ways, including, but not limited to, from insurance company promotional events, payments from insurers for promotional marketing and/or employee training and development, fees or a percentage of the interest paid to us for the administration of premium finance contracts, interest paid to us by financial institutions earned on fiduciary or trust accounts in which we hold your premium payments pending remittance to the insurance company.
Insureon is the largest digital agency for small business insurance. We strive to offer a high standard of service by working with top-rated U.S. insurance companies to help you find customized, affordable coverage that matches your risks and your budget.
Our agents are available to answer any questions you might have about finding insurance coverage, our compensation, and more to help protect your small business today.