Compensation Disclosure Policy

This disclosure is intended to help you better understand certain terms of compensation we get and so that we can comply with State Insurance Statutes. However, it is Confidential and specific to our business. Use of this information outside of your entity or for any unintended purpose could be harmful to our organization. Therefore, we expect and appreciate that you will respect its confidentiality.

Smith Brothers Insurance, LLC takes very seriously our role as your trusted partner. Our compensation is largely made up of commissions paid by insurers but, in some instances, we collect a fee for these services.

Commission may be part of the premium quoted, or we may collect a fee, but not both on the same policy. We do have arrangements with a number of insurance and financial service companies that provide additional commission or compensation to us for joint advertising efforts, training and professional development of our staff, and growth and profitability of our overall book of business.  In addition, these carriers may provide SBI with other non-monetary benefits such as travel, education, financing and entertainment.  This additional compensation typically represents less than 1% of the total premium handled in our office.  These terms of compensation are not specific to your account and do not directly affect the pricing of your account.

There is no way of knowing the value of the profit sharing or non-monetary compensation until after our book of business calendar year results have been calculated.  Based on history and existing contractual  agreements, SBI’s estimates of compensation on these agreements, as a percentage of our overall book of business, is based on historic averages by carrier, with an average of less than 1% on our overall book of written premium, but they range from 0% – 4% of written premium depending on the carrier.

If you would like additional details as to how we earn additional compensation through these profit-share arrangements, we would be happy to share them with you, including copies of their actual contracts. If interested, please contact our Director of Operations.


New York Disclosure

As an independent insurance agent or insurance broker I, or my firm, (hereafter “I”) may have access to more than one insurance company to place your coverage. Whether acting as an independent insurance agent or insurance broker I have certain obligations to you as the purchaser and certain obligations to the insurance company as determined in both statutory and case law. If acting as an independent insurance agent I may have authority to obligate the insurance company on your behalf and as a result I may be required to act within the scope of my contractual agreement with the company.

As the purchaser you need to understand that I typically will receive compensation from the selling company based on the agreement I have with the company. That compensation may vary from company to company and also be impacted by the volume of business I place with the company, the profitability of that business and other factors.

You may receive information about my compensation on the policy or policies you select and about any policies I have presented to you which you did not select by asking me for the information.