Compensation Disclosure Notice
Compensation Disclosure
At Adelie Risk Advisors, LLC (dba Adelie Insurance Agency in Florida and California), we're committed to transparency in our business practices, especially regarding how we're compensated for the services we provide. We want you, our business client, to understand how our agency earns revenue when assisting you with your commercial insurance needs. The means by which we are compensated are described below.
Commissions.
For the vast majority of insurance policies we place on your behalf, we receive commission directly from the insurance company that issues the policy. This commission is typically a percentage of the premium you pay for your policy. The commission percentage is set by the insurance carrier, and commissions are included as part of the total premium charged by the insurance company; they are not an additional fee charged directly to you by our agency for placing the policy.
Contingent and Supplemental Commissions.
In addition to standard commissions, we may also be eligible to receive contingent commissions or supplemental compensation from certain insurance carriers, which are typically based on factors such as the overall profitability of the business we place with that carrier, the volume of business, retention rates, or other performance objectives met by our agency over a specified period. These payments are determined by the insurance carriers and aren't directly tied to any single policy you purchase.
Surplus Lines Fees.
For certain unique or hard-to-place commercial risks, coverage may need to be secured through the "surplus lines" market. Surplus lines insurance is typically placed with non-admitted insurers (insurers not licensed in your state but approved to do business there for specific types of risks). When placing a surplus lines policy, our agency may charge a separate fee to compensate our agency for the specialized services involved in accessing the surplus lines market, including but not limited to, the additional administrative work, due diligence, and compliance requirements associated with these types of placements (e.g., filing of surplus lines taxes and affidavits). Any such fee will be clearly disclosed to you in writing and agreed upon by you before the placement of the surplus lines policy.
Your Right to Information
We understand that you may have questions about our compensation. If you'd like more detailed information regarding the compensation received by Adelie Risk Advisors, LLC (dba Adelie Insurance Agency) in connection with your commercial insurance coverage, please don't hesitate to ask your agent or contact us directly at info@adelieriskadvisors.com.
