Property and Casualty Commission Disclosure
Thank
you for placing your insurance through NFP Canada Corp. As your Independent
Insurance Broker, we purchase insurance products and services on your
behalf that are available, affordable, and understandable.
Our
role is to provide you with the best insurance value that combines coverage,
service and price. We also provide personalized service that includes
professional insurance advice, ongoing policy maintenance and claims support.
When any issue arises regarding your insurance coverage, we are your advocate,
using our professional experience to best represent your interests.
As
a brokerage, we are compensated in a variety of ways including commission and
contingency amounts paid by insurance companies and, in some cases, fees paid
by clients or other third parties. A breakdown of the different
compensation methods can be found below.
Commission
Income:
Compensation
from commission is part of your insurance premium and is paid to the brokerage
by the insurance company. We have separate commission agreements with each
insurance company we represent and the amount we are paid varies by business
line. See below for a list of the insurance companies NFP partners with
and the range of compensation we receive.
Contingency
Income:
For NFP
Canada to maintain strong relationships with our insurance companies, we work
with each of them to provide the type of business they deem desirable. The
insurance companies indicated with an asterisk on the list below recognize our
efforts through a Contingent Profit Commission contract. Payment may depend on
a combination of growth, profitability (loss ratio), volume, retention and
increased services that we provide on their behalf. It is called “contingent
commission” because it is not guaranteed income to the brokerage. Given the
complex criteria involved there is no way to determine the exact impact that
any individual insurance policy could have on contingency commissions and
individual employees involved in placing or servicing your insurance are not
compensated directly for any contingent income received. For further
information on Contingent Profit Commissions, you may go to the various
insurance company websites. The insurance companies also post the Code of
Consumer Rights and Responsibilities on their websites.
Fees
paid by clients:
For
complex business insurance programs a fee may be negotiated for the placement
of insurance coverage and additional services or products. These fees are
presented up front in a proposal and approved in advance of binding coverage.
On occasion, we may receive both commissions and client-paid fees for placing
insurance, which would be disclosed in writing. For example, we may receive
commission payments as part of a client’s insurance premium and may receive a
client-paid fee for additional services such as third-party administration of
employee benefits or risk management.
Proudly
independent:
NFP
Canada Corp. does not have any exclusive arrangements or loans which require us
to place a specified portion of our business with one insurance
company. Our independence allows us to always work in the best interests
of our clients.
Affiliations: NFP Canada Corp. is
affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a
HEP MGA, Group Force Benefits Inc., and Northern Premium Financing
Corp. through common ownership.
Northern Premium Financing Corp. is a premium
payment options available to some NFP Canada Corp. clients.
If you have
any questions regarding our brokerage compensation or any other aspect of your
insurance program, please do not hesitate to contact us at
compliance@nfp.ca.
INSURANCE COMPANIES AND COMPENSATION PERCENTAGES
Commissions are broken down by major lines of business (minor lines are
included within the broader categories). Commissions are paid annually for both
new policies and for renewals. Should there be an increase in the commission
schedule we receive from your insurer, or any other material change that
affects compensation arrangements, we will notify you.
* Insurance companies with whom we have contingent profit commission or
other bonus arrangements
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Insurance Company
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Personal
Property
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Personal
Automobile
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Commercial
Automobile
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Commercial
Property/Other
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AIG Canada
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10-20%
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Allianz
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15%
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Allied World Specialty
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15%
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Arag
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20%
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Arch Insurance
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5-20%
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Atradius
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15-17.5%
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AXIS Re
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10-20%
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*Aviva Insurance Company
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15-20%
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10-12.5%
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7.5-12.5%
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10-25%
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Berkley Canada
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10-25%
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Berkshire Hathaway Specialty Insurance
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10-25%
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*CAA Insurance Company
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20%
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12.5-15.0%
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15-20%
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*Chubb Insurance Company
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15-20%
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10%
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12.5%
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10-20%
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Chieftain Insurance
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20%
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12.50%
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*CNA Insurance
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12.5%
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10-20%
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Coface North America
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15%
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Ecclesiastical Insurance
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15-20%
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*Echelon Insurance
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12.5-15%
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10-12.5%
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15-20%
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*Definity Financial (Economical)
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17.5-20%
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10-12.5%
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12.5%
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15-20%
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*Edge Mutual
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20%
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12.5%
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8-12.5%
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20%
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Euler Hermes Canada
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15-17.5%
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Everest Insurance Company
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15-25%
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FM Mutual
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15%
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*Germania Mutual
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20%
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12.5%
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*Gore Mutual
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20%
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10-12.5%
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7.5-12.5%
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15-20%
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Great American
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20%
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*Halwell Mutual
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20%
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10-12.5%
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12.5%
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20%
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*Howick Mutual
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20%
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12.5%
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12.5%
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20%
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HSB Canada
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15-20%
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*Intact Financial Corporation
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20%
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10-12.5%
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10-12.5%
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15-32%
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Jevco Insurance
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8-15%
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Liberty International Canada
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12.5%
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10-20%
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*Lloyd’s
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22.5-27%
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22.5-25%
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Markel Corporation
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15-25%
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Munich Re
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20%
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National Liability & Fire Insurance
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10-15%
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*Northbridge Insurance Company
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20%
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10-12.5%
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7.5-12.5%
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7.5-30%
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Old Republic Insurance
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10%
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10%
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Optimum Group
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12.5%
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20%
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*Pafco Insurance Company
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20%
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10-12.5%
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*Peace Hills
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20%
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10-12.5%
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7.5-12.5%
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10-20%
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*Pembridge Insurance
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20%
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10-12.5%
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PURE Group
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10%
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QBE Insurance Group
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17.5%
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*SGI Canada/Coachman
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20%
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10-12.5%
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7.5-12.5%
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10-20%
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SSQ
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15%
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Starr International Group
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12.5%
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15%
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The Nordic Insurance Co. (Facility Association)
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7.5-11%
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6-10%
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*The Sovereign General
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12.5%
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15-20%
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*Travelers Insurance Canada
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20%
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12.5-15%
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12.5%
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15-30%
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*The Wawanesa Mutual
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20%
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12.5%
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12.5%
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20%
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*Trisura Guarantee
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15-30%
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*Unica Insurance
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15-20%
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12.5%
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12.5%
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15-20%
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United States Fire Insurance
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8-10%
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15%
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United States Liability (USLI)
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12.5-17.5%
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W.R. Berkley Corporation
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15-20%
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Western Surety
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27.5%
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*Wynward Insurance Group
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20%
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*Zurich Insurance Company
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10-12.5%
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12.5-30%
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