Compensation disclosure
Introduction
Embroker takes pride in providing insurance related services to our clients and partners. The use of Embroker’s software is free. By accessing our site or using our services, you agree to and are subject to our Terms, Privacy Policy, and these Disclosures.
Compensation
Embroker is compensated for providing insurance services to its client. Such services may include securing, facilitating, and servicing insurance policies, or providing advice or other services as agreed upon (the “Insurance Services”). Embroker believes you should understand how we are paid. Below is a summary of the types of compensation Embroker may receive, and based on the Insurance 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 sold and the specific insurer.
Contingent commissions
Embroker may also receive income through contingent commissions received from insurers for having 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.
Updating terms
Embroker reserves the right to change these Disclosures from time to time and in its sole discretion. The last time these Disclosures were revised is set forth below. Your continued use of Embroker’s website indicates your acceptance of all revisions.
Revision date: May 3, 2024