Full Disclosure Statement
To our valued clients:
Binks Insurance Brokers Limited is an independent brokerage. We believe that our independence is an important factor in protecting your best interests as a client.
We further believe that you are entitled to full and open disclosure about how we are compensated, and about whether or not there are any circumstances which might give rise to a potential conflict of interest in the placement of your personal or business policies with a particular insurance company.
Our full statement on compensation disclosure is provided as follows.
Overall, there are eight different areas where an insurance brokerage could face a potential conflict of interest. We have addressed each area in the following paragraphs:
- Direct or indirect ownership interest of any kind in a brokerage by an insurer, or in an insurer by a brokerage.
Binks does not own shares in any insurance company, and none of our shares is owned by any insurer.
- Common ownership of a brokerage and an insurer by a financial conglomerate or other holding company or group of companies. Binks is a privately-owned, Canadian-controlled corporation. All of its shares are owned by employees and private, individual investors.
- A loan, credit facility, or other financial relationship with an insurer, directly or indirectly.
Binks deals with the Bank of Montreal for its banking needs. There are no loans, credit facilities or other financial relationships with any insurance company.
- A financial or non-financial network affiliation with an insurer. Binks does not belong to any such networks.
- Exclusive contract with an insurer. Binks places certain business on a program basis, in order to obtain better wordings, more competitive pricing, and certain loss control services not available from insurers on an individual basis. Individual policyholders who qualify for such programs are offered the program insurer’s terms. Such insurers have included Travelers Canada, Aviva Canada, and ENCON. The program, not the individual policy, is negotiated with the marketplace.
- Volume/mix of business requirements. Binks has no restrictions placed upon us by any insurer with regard to volume or mix of business.
- Receipt of other commissions. Binks may receive commissions as a result of profit-sharing agreements with insurers. Such commissions are contingent upon certain goals, are not guaranteed, and are addressed in the section under Brokerage Compensation.
- Sales Incentives. Binks does not accept or allow its employees to receive any sales incentives offered by any insurers.
- Premium Financing. Premiums for insurance policies are due and payable at the effective date of the coverage. Effective immediately, we now offer only three choices of payment:
- Payment in full upon the effective date of the coverage.
- Where possible, an Automatic Monthly Payment Plan with some insurers. These plans typically include a finance fee. This also includes an option to pay by credit card.
- Premium Financing, either though Stuart Premium Financing or another approved company
We are pleased to announce that we have received regulatory approval to offer Premium Financing to give you more choice in paying your commercial insurance premiums. Effective immediately, Stuart Premium Financing, (a division of Binks Insurance Brokers Limited), will offer a Payment Plan of up to 10 monthly instalments with a 20% down-payment. In no way are you obligated to use this Premium Financing plan. Binks Insurance Brokers Limited receives no referral fees or commissions from Stuart Premium Financing.
OUR BROKERAGE COMPENSATION
Brokerage commission is a part of most insurance premiums. The commissions paid by insurers are fairly standard, and vary according to type and classification of insurance policy: Automobile ranges from 10-12.5%, Property ranges from 10-20%, and Liability commissions are from 10% to 20%.
This commission percentage is paid annually for both new business and renewals. Overall, the average commission across our entire book of business is about 15%, out of which we must pay salaries, sales commissions, taxes (including full GST with no input tax credits) and other operating costs of doing business.
For your information, we have listed below the majority of Insurers that we represent:
- Aviva Canada*
- Boiler Inspection & Insurance
- Chubb Canada
- DAS Canada
- Facility** (Intact)
- Pitcher & Doyle
- Guarantee Company of North America*
- Travelers Canada*
- Zurich Canada
- Plus over 30 specialty insurers
* insurer provides profit-sharing and growth incentive
** commission is capped on Facility business.
In some cases, we receive no commission at all from an insurer, and we must charge a fee for services rendered to you. If we do receive a commission from an insurer, and also find it necessary to charge a fee because of other expenses in handling your file, then we have a professional obligation to fully disclose to you the full compensation.
In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. The Insurers with an asterisk noted in the table recognize our efforts through a profit-sharing contract. Payment of this profit-sharing commission may be contingent upon on a combination of growth, profitability (loss ratio), volume, retention and increased services that we provide on behalf of the Insurer. This additional compensation is not guaranteed, nor is it applicable to any one policy. Canadian Insurance Companies now post details of these plans on their corporate websites.
At Binks Insurance Brokers Limited, we purchase insurance products and services on your behalf that are available and affordable in the current marketplace. Our role is to provide you with the best insurance value that combines coverage, service, and price. We also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance and claims support. When any issue arises regarding your insurance coverage, we are your advocates, using our professional experience to best represent your individual interest.
Your Insurer will be providing you with a Consumer Code of Rights and Responsibilities, which will be sent to you with your next policy. If you have any questions regarding this or any other aspect of your insurance please contact us.
BINKS INSURANCE BROKERS LIMITED
Harry S. Binks, MBA, CIP, CCIB, CRM