Sovereign General Insurance supports and compensates accordingly, the value-added services provided by independent brokers. Building strong broker - company relationships is an integral part of the independent broker presenting the insured to the insurance company in the best light.


Independent Broker Compensation

Line of Business

Standard Commission

Commercial Lines
20% - 25%
17.5% - 25%
Specialty Lines
20% - 27.5%
  Errors & Omissions Insurance
  Director's & Officers Insurance
15% - 30%
24% - 32%

Commissions may vary on individual policies based on the value-added services provided by the independent broker. For some specialty business Sovereign distributes products through Managing General Agents (MGA) , which have underwriting, claims, reinsurance and administration expertise. An MGA does not provide independent services to the insurance public, rather their products are distributed by independent brokers. The above commissions include the fees charged by the MGA for these services.

Contingent Commissions

The Sovereign's contingent commission programs allow for payments to qualifying brokers annually, applicable to their total portfolio of business with the company. Such payments are made based primarily on the profit performance of portfolios, and that business is judged on results over a period of between one to five years. The total amount of contingent commissions that Sovereign expects to pay in any one year are about 3% of the company's gross written premiums.