Industrial Coverage Corp\ Commercial Coverage Brokers of America Inc. act as an independent insurance agent or broker, placing personal, commercial and benefits related insurance coverages for its customers with a variety of insurance carriers. We understand the vital role that insurance plays in providing you with financial security and peace of mind. You should know that our first priority is finding the most appropriate insurance coverage for you at a reasonable cost.
Primarily our compensation is derived from commissions paid by these carriers based on a fixed percentage of the premiums set by the insurance company, not us. It is important to note that the commission percentage paid to us and indicated in our agency agreements are filed with and approved by state insurance departments as part of a company's rates and are not charged in addition to their rates. In a few cases where insurance is placed with a carrier that does not pay commissions, we must charge a fee for our services. Whenever a fee is charged to a customer, the fee is detailed in a service agreement which the customer signs acknowledging the fee amount and the related services being provided.
Although commissions are our principal source of revenue, the agency may derive additional compensation from a number of sources. Over the course of the year, we earn interest income on the premiums that pass through our bank accounts. We also may be paid fees or be reimbursed by an insurance carrier to cover a portion of the cost of marketing efforts related to business development such as agency training, advertising, mailings or brochures. We may also receive other compensation in the form of trips, prizes or gifts for doing business with the insurer you have selected.
In addition, we may earn income from so called "contingency agreements" which are profit sharing agreements that allow for the payment of additional compensation based on the underwriting profitability or volume of our overall book of business with an insurance company. These payments are not guaranteed and since they are based on the results of our total book of business with a company, we cannot determine what the result will be until after the close of the year. Further, since these payments are made on the basis of our entire book of business with a company, we cannot determine what impact a specific policy may have on those results. The presence of such an agreement with a particular carrier has no influence on which carrier we recommend for any insured. The placement of an insured's coverage is made on the basis of whether the coverage procured is suitable for the risk and the cost of the coverage is competitive.
You may receive information about our compensation on the policy or policies you select and about any policies we have presented to you which you did not select by asking us for the information.