Broker fee payments
- Thread starter BSEA
- Start date
David Taylor Jr
Guru
- 295
Stripe
- 5,290
I never charge a broker fee on a policy, unless it is a surplus lines policy and I'm getting a low commission. Then again, I only sell commercial insurance and my average count is much larger, so I'm making bigger commissions anyways.
Dreamiekid
Super Genius
- 107
Broker fee? Like what is the charge for or I don’t understand.
I would charge the MVR if the company would let me
I would charge the MVR if the company would let me
Don't risk charging broker fees on personal lines. Most personal lines are direct billed on renewal, and is usually serviced by the carrier direct. If you have an agent appointment with the carrier, you cannot charge fees. If you have a broker appointment for personal lines, feel free to do so. Broker fee is related to YOUR service. You determine what your service is worth. If it's too high, consider lowering it.
For commercial E&S policies, there is definitely room to charge your own fees. E&S programs roughly give 10-15% commission, in which it's not enough for an agency to operate. A fair fee is not taboo in this case, you gotta eat.
And get a merchant services account, link it to your trust and start charging away.
For commercial E&S policies, there is definitely room to charge your own fees. E&S programs roughly give 10-15% commission, in which it's not enough for an agency to operate. A fair fee is not taboo in this case, you gotta eat.
And get a merchant services account, link it to your trust and start charging away.
- 2,195
I think the days of charging brokerage fees are going away. I generally agree that the best place to use them are with E&S policies.
If you are going to have brokerage fees I think its important to have a policy clearly spelled out of when you charge and how you charge them.
If you are going to have brokerage fees I think its important to have a policy clearly spelled out of when you charge and how you charge them.
mmdz33018
Expert
- 45
The only fees retail agents are allowed to charge are $5 inspection fees, $10 for pip/pd policies sold alone, MVRs fees, and credit card fees that can be passed down to the client. With the new bill that just passed you have to be a managing general agency (wholesale agency) to charge ridiculous "reasonable" unlimited fees.
