Welcome to the Frequently Asked Questions (FAQ) page. Below, we have tried to answer the most common questions visitors to this our Web site may have. If you find that your question is not answered on this page, please contact us or call us at 905-646-7000.
What is an insurance consultant?
- A consultant is not a retail insurance broker,
- A consultant does not sell insurance.
- We don’t compete with insurance brokers.
- We are not associated with insurance providers, agents or brokers.
- We don’t collect commission on insurance policies.
- As a result, consultants can be objective,
- and that is to your advantage.
Who does a consultant work for?
A consultant works directly for, and only with the client.
What insurance companies do you sell for?
Unlike agents and brokers, consultants do not represent any insurance companies. They work with organizations as a member of the ownership or management team. They work closely with their client, understanding the operations of the organization, assessing insurance needs, and advising on options, and insurance alternatives. Consultants can assist their clients with the procurement of insurance, which is actually placed by agents and brokers or with the insurer directly.
- Sometimes agents and brokers call themselves consultants, but they are still sales professionals paid by insurance companies to sell insurance policies on a retail basis. Insurance companies refer to them as “producers”. In Ontario for example, you can become a broker after a one week course, which is hardly sufficient experience to address complex insurance issues and challenges.
- Producers are usually paid on straight commission, with the percentage of the policy commission highest in the first year. This leaves little incentive to service your business after the first year.
- Many brokers will pass you off to an in-house service person after the first year. This person is usually called a Customer Service Representative, or CSR. Their experience and qualifications are usually less than that of a producer.
- Unlike consultants, brokers have commission to make or lose from the sale of insurance.
- Keep in mind that it is the insurance company who pays the and agent or broker.
Why Use a Consultant?
Agents are tied to one insurer. Brokers are usually limited to those insurers with whom they have a contract. Most organizations don’t have the knowledge to understand which insurance providers have the expertise and experience to meet their needs.
Consultants have the requisite skills to work with an organization as part of their management team.
Large companies usually have insurance and risk managers on staff. YOU are able to have this level of expertise on a part time basis. This concept is referred to as “Outsourced-Risk-Manager”
How much does this cost?
- Often, it reduces cost. Unnecessary coverages are eliminated, and appropriate levels of risk retention utilized.
- Coverages and levels of protection are accurately determined and thoroughly assessed, which ensures that the final program, including the insurance contract, is uniquely tailored to the specific needs of each client. We collaborate on the entire process.
- No more “we have a package just for you”.
- Most of our engagements are performed on a “fixed price per project” basis.
- Annual Administration Contracts may be arranged on a “base cost plus” basis.
What do you charge?
- Typically, we work within a fixed fee by project.
- For long term engagements where it is not practical to identify the scope in advance, we can arrange an hourly rate.
- This can be arranged by the project, monthly retainer or annual contract.
- Fees are subject to 13 % HST if work performed for Canadian clients.
- Travel Time: 50% of hourly rate, if beyond 15 miles(25 km) one way.
- Mileage: Beyond 15 miles (25 kms), $0.46/km or $0.75/mile.
- Disbursements if directly applicable to specific project, such as airfare, meals ($50. max /day) and car rental, at cost.
- Normal office expenses are included within the hourly rate
- A retainer is required to confirm the client’s commitment to a project.
- A retainer is required before we do any work on a litigation matter, including document review, research, or providing an opinion.
- We credit the retainer amount to the final invoice of the engagement.