Agency Fee's

May 17, 2011

  1. CaptiveGuy
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    CaptiveGuy Guru

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    I agree, high risk auto and commercial lines p&c usually justify fees. Most agents around here all charge $250 for commercial lines but nothing for personal lines.

    Even my non-standard clients are on EFT or pay in full for 6 months so I have yet to charge a fee on personal lines. I'm the guy offering the "same premium but no fee" as Greensky put it.
     
  2. Bertolinoins
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    What if your agent had to go trough several different surplus lines brokers to secure the coverage and was being paid 8-10%... then would you care or would you just be happy to get the coverage at the best possible price?

    I fee all of my surplus lines accounts up to a 15% commission level. 20% if it is a high touch industry. They are more work and less profitable than standard business but I do it to help the client. The other option is to tell them to take a walk... which is what many agents do. I have no problem with broker fees as long as they are disclosed. The client can always go elsewhere.
     
  3. GreenSky
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    GreenSky Guru

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    The OP didn't indicate surplus, I answered the question in a general manner. Surplus lines may be a different choice.

    Rick
     
  4. Bertolinoins
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    Bertolinoins Guru

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    In my state (CA) you cannot charge a broker fee on any companies you are directly appointed with. If you have an agency contract, you cannot charge a broker fee. If you go through a 3rd party then you can.
     
  5. OCinsurance
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    OCinsurance Super Genius

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    I used to never charge any fees, but there is a cost to doing business. Also, if I have an agent spending hours working on something for a client and we receive a $80 comm, and then have to pay $5 in postage to send the policy ,we barely make a dime. It costs money to cover rent, utilities, e and o, and a staff. I also often hear my clients say how much they appreciate our service.

    Fyi, I'm talking about fees on commercial p and c.

    Does anyone know a good place to find all of the agency fee and broker fee rules for each state?
     
  6. MDInsuranceguy
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    MDInsuranceguy New Member

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    Also, how does collecting the fee work in terms of payment and how the client pays?
     
  7. Kiwi2020
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    Kiwi2020 New Member

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    Question, is anyone charging a broker fee to cover administrative costs, merchant fees etc. If so how are you stating that to the insured in the final sale process
     
  8. InsuranceGuy29
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    InsuranceGuy29 Expert

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    To be honest, I see absolutely zero wrong with this. I can't tell you how many people have absolutely wasted a huge part of my life by me having to research things for them, get them all set up, only for them to say...."Ah, it's too expensive," or "Ah, I found another place," but thanks anyway!" :arghh:

    At the very least, it should be a $100 consulting/research fee, and then it gets kept by the agent if they don't sign up. If they sign up, they get the $100 back. No one is entitled to anyones time. Not being able to charge a fee in my state is actually one of the things I hate about this industry the most. If I wanted to run a charity, I would. I'd have about $5,000 more in bank account for my "free" labor.
     
  9. Kiwi2020
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    Kiwi2020 New Member

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    I can't agree with you more. Thank you for your reply!
     
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