What does your broker earn per employee?
Most brokers are paid a percent of premium built into your rates. See that pay as a monthly amount per employee and what happens to it at renewal.
Broker pay per employee
Enter your total premium, the commission percent and any flat fees. If you are unsure, your carrier or broker can tell you.
Your estimate
Estimates only. Results depend on the figures you enter and on your plan documents. Not tax, legal or financial advice. Compensation arrangements vary by carrier and contract.
How broker pay usually works
Many brokers are paid by the carrier as a percent of premium, so the cost is inside your rates and does not appear as a separate bill. Others work for a flat fee or a per-employee amount that you can see and compare.
Why it is worth knowing
When pay rises with premium, the broker earns more at a bad renewal than at a good one. Seeing the amount per employee lets you judge whether the service matches the pay and whether a fee arrangement would fit better.
Common questions
Is broker pay added to my premium?
Usually it is built into the rate. Your premium is the same whether you work with one broker or another, but pay can differ by arrangement.
Can I ask my broker what they earn?
Yes. Under federal law, brokers with qualifying plans disclose compensation on the Form 5500 schedules and in service provider disclosures.
What is a fair amount?
It depends on group size, service level and the work involved. Compare the monthly amount per employee against the service you actually receive.
Would a flat fee cost less?
Sometimes. A flat fee removes the link between your increase and broker pay. We are happy to review any arrangement as part of a second opinion.
Ask us for a second opinion
Send us your renewal and we will review the numbers, the carriers and the pay arrangement with you. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
Unhappy With Your Current Broker?
Switching to CFH takes one signed letter. Your carrier, plan, ID cards and payroll deductions stay the same.
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