When it comes to insurance, most people think that the biggest decision to make is the policy. While choosing the right policy matters, you actually have to make a more important decision. You have to decide between a broker and an agent. Learn how insurance brokers in Calgary get paid in order to understand why they benefit you.
Brokers Work for You But Agents Work for Insurance Companies
First, you should know that brokers are not the same as agents. Insurance agents work for the companies they represent. Therefore, these agents are always looking out for their employers first and foremost. Insurance brokers in Calgary, on the other hand, work directly for you. They represent your interests as they search for the best insurance coverage for your needs. This key difference is important to understand.
Brokers Will Earn a Commission from Your Sales
Because they are employees, agents get paid from the insurance company. As brokers, the paycheck must be earned in another way. Insurance brokers in Calgary still get paid by the insurance company. However, this payment comes as a commission. In other words, they are paid something like a finder’s fee because they are still giving the insurance provider new business.
The Payment Can Be a Percentage or a Flat Fee
The commission can be paid in two forms. In many cases, the commission is a percentage of the overall coverage. It may be anywhere from 2 to 8 percent depending on the market. However, in some cases, the broker may charge a flat fee. This happens most often when the broker is working for a larger client. In these cases, the broker may charge a flat fee for each enrollee into the coverage. This can streamline the process for larger clients.
Lakeview Insurance Brokers Ltd. has been a highly dedicated member of the Independent Brokers Association of Albert and has been family-run since 1979. Our brokers take the time to ensure you get the best policy that suits your needs. Contact us today to get started at 403-287-2521 or send an email to [email protected]