How is a business insurance agent paid?

There are several options for agents' compensation - In my experience, the insurance carrier saves a great deal of money by offering their products thru agencies (ie. employees, bldgs, phones, etc...). An agent benefits the consumer by representing several companies, so that he/she may choose the best coverage for the best price for the consumer. The agent is paid by the carrier, usually a percentage of the policy premium. The cost is generally not passed on to the consumer because the carrier has saved on hard costs as described above. There are also sometimes 'bonuses' based on the amount of business an agency has placed with a certain company.

First answer by Jabeck40. Last edit by Jabeck40. Contributor trust: 5 [recommend contributor]. Question popularity: 1 [recommend question]