Negotiating the fees you pay to your business insurance broker may be possible, and is largely dependent on the size of your company, as well as the specific internal incentive policies of your insurance provider.
Anytime that fees and especially commissions are involved in business transactions, the first question that often comes to mind for the customer or client is, ‘Can those commissions and fees be reduced?'
Given that insurance is a field in which commissions and fees make up most if not all of broker compensation packages, this is a question that comes up a lot.
In many ways, buyers are almost conditioned to have this response, given that so many industries use reduced commissions and fees as one of the primary incentives to induce a potential buyer into closing the sale. But is that how it works with insurance brokers, too? Can a buyer negotiate their way to lower broker compensation?
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While far, far less common of an occurrence in the world of insurance than it is in car sales, the answer is that it may be possible to negotiate for reduced fees and commissions with a broker.
The likelihood of that negotiation being successful, however, varies widely depending on a few key factors – specifically, the size of the buyer’s company, the type of fees and commissions in questions, and the policies of the provider with regard to matters of broker compensation.
Whether or not you and/or your company are ultimately successful at negotiating a lower rate for your broker’s commission and fees, there is little to no downside to inquiring about the possibility.
When evaluating potential new insurance brokers with whom you’re considering working, such a discussion can be a good way to broach the subject of the various ways and contingencies that your broker may be compensated, which is always good information to have available.
In situations where your company may have been working with the same broker for years, raising this issue may be a good way to come by a better understanding of your broker’s compensation structure if you’re not familiar with it already. Additionally, such a discussion may serve as inspiration and motivation to reassess your insurance situation in general, potentially leading to a desire to compare your broker’s and provider’s negotiation flexibility with that of other brokers and providers on the market.
In any case, if such an inquiry leads you to consider changing brokers or reevaluating and potentially refreshing your insurance policies, access Mployer Advisor's searchable database. You can find and contact brokers who meet all the criteria and qualifications most relevant to you and your business.Search Insurance Brokers Near You
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