Safeco Insurance producer compensation disclosure
Producers are not our employees; however, we do compensate them for placing insurance with us and for providing other services to our customers. The following is a brief overview of the types of compensation we pay our producers. Additional information also may be available from your producer.
This commission is a percentage of the premium charged to the insured for the policy. The amount of the commission depends on the type of insurance product sold, risk classification, producer size, state where the risk is located, or services provided to the policyholder. We offer a wide variety of insurance products, and therefore pay a wide range of commissions. For the majority of our products, we pay producers a base commission in the range of 3% to 18%, although the commission may be higher for some products.
Producers may charge their customers a fee related to services they provide. Any such fee would be in addition to receiving a commission from us. In certain transactions, more than one producer may be involved in placing insurance coverage with us. If more than one producer is involved, both producers may receive a commission or, more often, the commission is split between the producers.
We may also reimburse certain producers' expenses relating to marketing activities. This may include advertising materials, training expenses, or goods and services that help to promote our company and our products. We also may pay for business meals and provide other entertainment for our producers.
Also from time to time we may give producers complimentary items of nominal value. These items are generally not based on profitability or growth but are typically in the form of marketing items to promote new products and programs.
Finally, we may pay compensation to entities that endorse Safeco and promote the sale of our products and services.