Broker compensation

Some brokers also process and underwrite policies for higher commissions from time to time. These arrangements have no impact on the cost of your policy.

When we have a profitable year, our broker partners can share in that profit. This agreement is based on the broker’s entire volume of business with Economical Insurance (not individual policies) and represents approximately 3% of Economical’s total earned premium.

Occasionally, Economical Insurance offers financial assistance in the form of debt or equity to support a broker partner’s operational needs, business development, or perpetuation plans. Our broker partners remain free to offer other insurance companies’ products, and they should disclose any such relationships to their clients. We don’t expect these arrangements to affect the advice given to you.

Brokers regularly assess and review insurance providers to ensure they’re partnering with companies that meet their standards — and your needs. If a broker chooses to change to an insurance company they feel offers better value to their customers, they can do so through what is known as a portfolio transfer. Also called a portfolio rollover, this occurs when a broker transfers a full or partial book of business to Economical from another insurance company (or companies). We support independent brokers who transfer clients to Economical Insurance through training, technology, and financial support.

On occasion, we invite our broker partners or their office staff to participate in events or travel opportunities to thank them for their expertise and dedication. We may also send small gifts in recognition of a long-term business association with the company, stellar product awareness, sales and training initiatives, and participation in company focus groups. These prizes are tokens of our appreciation and do not interfere with your broker’s commitment to putting your needs first.