How Much Money Do Insurance Brokers Make?

When we first rolled out Bulk Insurance Group in 2022, one of the most common questions we received was, "How do insurance brokers get paid?" It’s a fair question, and one we’d love to address—along with some context about why Bulk Insurance Group exists and how we operate within the trucking insurance space.

In 2022, Jared tasked me with creating an insurance division to further serve the Bulk Loads community. As a result, we launched Bulk Insurance Group, a full-service property, casualty, life & health insurance agency. We operate as a retail broker, which means we work directly with our clients to find them the best insurance coverage possible.

We have direct contracts with seven major insurance companies: Continental Western, Acuity, ICW, Progressive, Berkshire, Ten Four, and Missouri Employers Mutual. However, most trucking insurance companies do not distribute their products directly to retail agencies like us. Instead, they work through what’s called a Managing General Agent (MGA) or a wholesaler. To provide comprehensive coverage to our clients, we partner with two wholesalers: Risk Placement Services and Amwins. These wholesalers give us access to a wider range of trucking insurance markets, including Northland, Canal, Lancer, Crum & Forster, Navigators, Occidental, and Dakota Truck Underwriters,Hudson, Berkley Prime among others.

Because many trucking insurance markets are accessed through wholesalers, most truck insurance agencies have access to similar products and markets.

Now that we’ve established how we operate, let’s answer the key question: How do insurance brokers make money?

At Bulk Insurance Group, we are paid through commissions on the policies we place for our clients. The commission rates we receive from our contracted markets range from 10% to 12.5% of the total premium.

For example, if a client has a total annual insurance premium of $100,000, Bulk Insurance Group would receive $10,000 in commissions (assuming a 10% commission rate). Unlike in freight brokerage, where commissions might be negotiable, the commissions we earn in the insurance industry are typically fixed. This means that whether it’s 10% or 12.5%, these rates are contractually set by the insurance companies, and we don’t negotiate them.

While it’s clear that commissions are how we earn money, our focus at Bulk Insurance Group goes beyond just making a sale. We exist to offer valuable insurance solutions to the Bulk Loads community, ensuring that trucking companies are properly protected with policies that meet their unique needs. Our role is to guide our clients through the often complex world of insurance, provide ongoing support, and act as their advocate when it comes to managing their risk.

The true value we bring is in helping clients navigate the intricacies of insurance and ensuring they have the right coverage for their business.