How much to pay a Commercial producer?

[PREFERREDINS]

We are personal lines agency, mainly dealing with auto/home. We want to expand into commercial insurance. I would like to know what are the payment compensation for a Commercial Producer? what is the % that a commercial agent typically gets from a Policy?

Thanks for the Help

[volstrike3]

It varies a lot based on what services the agency provides. My agency pays 40% new, 30% renewal with a lot of back office support. I have heard of other agencies that pay 50% new and 25% renewal. There are a few bucket shops that pay 40-50% new and renewal but offer very little in the way of back office support and market access.

[PREFERREDINS]

Thanks for info.

[Jason]

I get 50% new 30% renewal on commercial, 50% new 15% renewal on personal lines, 33% new/renewal health ins, full benefit package that includes paid health for me, up to 3% match Simple IRA, life, short & long term disability and mileage on my vehicle. And I get as much support from our 3 CISR's as I need. I think I'm getting a pretty fair deal.

[wlunday]

You're a small agency... keep in mind that a commercial producer may want to work for a part ownership, too.

At my agency, for those that only want a paycheck and commissions, not ownership, I pay 50% new, 30% renewals and have dedicated CSR help. Also, we use last year's income to calculate the value of a vacation / sick day pay, as they also qualify for this. Benefits include employer paid medical, short & long term DI, employee life, and a Safe Harbor 401-k plan with 100% match for the first 3% and 50% match on the next 6% deferred.

Personal Lines producers get a $12 to $15 per hour base and 50% of new. No commissions on renewals, but the base takes care of that. We are growing and my Personal Lines producers will make about $60K in income and benefits this year. Commercial will do about 75K. Owners are doing about $140K. My life/health producer pulls down 125K or so, as he is strictly commission now. Hope this helps.