Hardy Insurance & Risk Management (The Agency) strives to continually maintain the highest standards of ethical conduct to earn the trust and confidence of all those with whom we interact. We are deeply committed to the principles of honesty, integrity and impartiality. All business activities of the Agency are designed to comply with applicable federal and state laws and responsibility for compliance with these laws rests with each employee of the Agency. The Agency has in place sound policies and procedures to promote ethical conduct by our employees. Our business practices are designed with our clients’ best interests in mind.
The Agency enters into business arrangements with certain carriers under which Hardy’s agents market and sell insurance products to market segments. As an agent, the Agency is acting on behalf of our carriers.
Compensation of the Agency by Insurance Carriers
The Agency is compensated for the sale and placement of insurance products in one or more of the following forms: Agency commission, which is based on a percentage of premium paid, accounts for the majority of Hardy’s revenue. Commissions are usually a percentage of fully-insured premiums (or, in the case of partially self-funded plans, their premium equivalents), controlled by the carriers. Feel free to contact your Agent for further information on Agency Compensation.
Contingent commission compensation (also called overrides or profit sharing), is based on the total performance of the applicable business the Agency has placed with a particular carrier. Factors for calculating performance include account growth and volume, loss ratio or overall profitability, and premium retention or persistency. Generally, these factors are reviewed for the carriers entire book of business with the company, not for any individual client. The Agency has entered into contingent commission agreements with some of the insurance carriers with which we do business. Hardy’s employees may, from time-to-time, give and receive small gifts, dinner or entertainment in carrier relationship-building activities.
The Role of the Agency
The Agency’s goal is to do what is best for our clients. To achieve this goal, we may act as a broker, an agent, a consultant or any combination of these roles.
As a broker, we analyze our clients’ needs and perform any or all of a number of services for them, including assessing which carriers meet the client’s needs and expectations, presenting policy options and recommendations, negotiating with carriers when appropriate, placing policies, and providing on-going customer service and related services. In some instances, the Agency may enter into broker agreements with certain clients.
The Agency’s consulting clients are offered the same services as those offered to brokered clients (as described above). The difference between broker services and consulting services is in the form of compensation.
A percentage of the Agency’s income comes from fee-paying clients. Most fees are paid in lieu of commissions, but in some instances, a client will pay a fee in addition to commission. In these cases, specific disclosures related to compensation are provided to the client upon request or through standard commission reporting by the carrier. Fee-paying clients enter into fee agreements with the Agency.
Compensation of Hardy’s Employees
Hardy’s employees do not receive any monetary or other incentive to place insurance with one carrier over another for any reason, including any potential receipt by the Agency of contingent or other compensation from a particular carrier. Instead, employees are compensated through the standard commission system, which is the primary source of the Agency’s revenue.