Fee Policy

Beecher Carlson offers a variety of compensation methods including commissions and fees paid by insurance companies and fees paid by clients. Beecher Carlson may be compensated through one or a combination of the following methods.

Retail Commissions: A retail commission is paid to Beecher Carlson by the insurer, managing general agent or wholesale broker as a percentage of the premium charged to the insured for the policy. The amount of commission is dependent upon several factors including the type of insurance product sold and the insurer selected by the client. Retail commission rates can vary from transaction to transaction.

Client Fees: Some clients may negotiate a fee for Beecher Carlson’s services instead of or in addition to retail commissions paid by insurance companies. The written fee agreements are typically in accordance with a Client Broker Service Agreement which outlines the services to be provided, the compensation to be paid to Beecher Carlson, and the terms of Beecher Carlson’s engagement. The fee may be collected in whole or in part through the crediting of retail commissions collected by Beecher Carlson for the client’s placements.

Wholesale Broking Commissions: For some transactions, Beecher Carlson/Brown & Brown, Inc. may act as a wholesale insurance broker. In these placements, Beecher Carlson/Brown & Brown, Inc. is engaged by a retail brokerage which may include Beecher Carlson’s retail broking operations that has the direct relationship with the insured. As the wholesaler, Beecher Carlson/Brown& Brown, Inc. may have specialized expertise, access to surplus lines markets, or access to specialized insurance facilities not available to the retail broker. In these transactions, the insurer typically pays a commission that is divided between the retail and wholesale broker in accordance with arrangements made between them.

Insurer Consulting Compensation: Beecher Carlson receives compensation from insurers for providing consulting, data analytics, and other services. The services are designed to enhance the product offerings available to our clients, assist insurers in identifying new opportunities, and improve insurers’ operational efficiency. The scope and nature of the services vary by insurer and by geography. This compensation can be paid in the form of a fixed fee, a percentage of premium (previously known in the United States as enhanced commissions), or a combination the two.

Contingent Commissions: Some insurers agree to pay contingent commissions to brokers who meet set goals for all or some of the policies the brokers place with the insurer during a given year or other time period. The set goals may include volume, profitability, retention, or growth thresholds. As the amount of contingent commission earned may vary depending on factors relating to an entire book of business over the course of a year, the amount of contingent commission attributable to any given policy is typically not known at the time of placement.

Beecher Carlson does not accept contingent commissions on US Fee clients that have requested to be excluded from any Carrier Contingent arrangement. Beecher Carlson operations outside the United States that accept contingent commissions seek agreement from insurers to not pay contingent commissions relating to any insurance policy issued to an insured domiciled in or managed from the United States.

Supplemental Commissions: Some insurers agree to pay brokers supplemental commissions or compensation based on a broker’s performance during the previous year. Supplemental commissions are paid as a percentage of premium set at the beginning of the calendar year; this percentage remains fixed for all policies written by the insurer during the ensuing year. Unlike contingent commissions, the amount of supplemental commission is known at the time of insurance placement. Like contingent commissions, they may be based on volume, profitability, retention or growth.

Insurer Administration and Other Services: Beecher Carlson is compensated by some insurers for administrative or other services performed on their behalf.

Other Benefits or Compensation: Beecher Carlson may occasionally participate in insurance-company promotional events or employee training and development provided by insurers. Beecher Carlson is sometimes reimbursed by insurers for its costs related to promotional marketing. Beecher Carlson also earns interest and other income on premium accounts as paid to us by the financial institutions where insurance premiums are held prior to payment to insurers. Beecher Carlson sometimes receives payments for referring clients to other service providers.

For more information on Beecher Carlson’s compensation, please contact your client executive.