STATEMENT OF BROKERAGE SERVICES AND COMPENSATION
As your independent insurance advisor, we represent your interests in the marketplace. Our role is to provide you with the best value proposition that combines coverage, service, financial stability of the insurers with whom we trade and competitive market pricing. We also provide personalized, quality service that includes professional insurance advice and risk management guidance, ongoing policy maintenance and claims support as required.
Arthur J. Gallagher Canada Limited has no direct or indirect ownership or financial interest in any insurer nor does any insurer have any direct or indirect financial interest in our company, whether through equity ownership or loans of any kind. As a truly independent insurance broker, we are not a member or affiliated with any insurer owned, financed or affiliated financial or non-financial network.
Brokerage compensation is part of your insurance premium. For your information, we have listed below the standard range of compensation by line of coverage which varies by insurer as a percentage of the overall premium, please note, if your account is on a fee-for-service / net of commission based compensation arrangement, the below does not apply:
Commercial Property / Boiler & Machinery 10%-20%
Commercial Automobile 7.5%-12.5%
Commercial General Liability 10%-20%
Fidelity / Crime 10%-20%
Umbrella / Excess Liability 7.5%-15%
Professional Liability 10%-15%
Management Liability 10%-17.5%
Ocean Marine / Cargo 10%-20%
This commission percentage is paid annually for both new business, renewal business and any mid-term policy transaction that generates additional premium. Should there be an increase in the commission schedule we receive from your insurer or MGA, or any other material change that affects compensation arrangements, we will notify you.
In order for us to maintain strong relationships with quality insurers, we work with each carrier on an individual basis to provide the type of business that meets their respective underwriting criteria. There are insurers that recognize these efforts through a “Contingent (Profit) Commission” agreement. Payment of this Contingent (Profit) Commission depends on a combination of growth, profitability (loss ratio), volume, account retention and increased services that we may provide on behalf of the insurer. Contingent (Profit) Commission is not guaranteed and is based on our entire portfolio of business with that particular insurer. Insurance Companies listed with “ * “ may provide “Contingent (Profit) Commission”. For detailed information on Contingent Commission, please go to the individual company’s website.
Arthur J. Gallagher Canada Limited and its subsidiaries share common ownership with Arthur J. Gallagher & Co., a public company listed on the New York Stock Exchange.