Fee-Based Model vs. Commission-Based Model
How your broker is compensated can significantly impact your total insurance cost. Traditional commission-based models often bundle broker compensation directly into the premium, making it difficult to see where your dollars are going.
CBIZ Sports takes a different approach, leveraging a fee-based model that increases transparency and gives you greater control over your insurance spend.
See how these structures differ, and why transparency matters — especially when premiums increase.
| Competitor: Commission-Based Example | |||
|---|---|---|---|
| Premium | Explanation | ||
| $100,000 | Hidden commission is already built into the premium. Typically, around 15% is paid to the broker from the carrier that your policy is written with. | ||
| $100,000 | Carrier gets $85,000, and the broker gets $15,000. | ||
| $6,000 | TPA Fee | ||
| $106,000 | Total cost (premium and fees) | ||
| Competitor: Commission-Based Example | |||
|---|---|---|---|
| Premium | Explanation | ||
| $85,000 | Commission from carrier is taken out, resulting in your premium being lower overall. | ||
| $7,000 – $10,000 | CBIZ Sports Fee | ||
| $6,000 | TPA Fee | ||
| $98,000 | Total cost (premium and fees) | ||
Premium Increase Examples
How your broker is compensated can significantly impact your total insurance cost. Traditional commission-based models often bundle broker compensation directly into the premium, making it difficult to see where your dollars are going.
CBIZ Sports takes a different approach, leveraging a fee-based model that increases transparency and gives you greater control over your insurance spend.
See how these structures differ, and why transparency matters — especially when premiums increase.
| Competitor: Commission-Based Example | |||
|---|---|---|---|
| Premium | Explanation | ||
| $100,000 | Hidden commission is already built into the premium. Typically, around 15% is paid to the broker from the carrier that your policy is written with. | ||
| $100,000 | Carrier gets $85,000, and the broker gets $15,000. | ||
| $6,000 | TPA Fee | ||
| $106,000 | Total cost (premium and fees) | ||
| Competitor: Commission-Based Example | |||
|---|---|---|---|
| Premium | Explanation | ||
| $85,000 | Commission from carrier is taken out, resulting in your premium being lower overall. | ||
| $7,000 – $10,000 | CBIZ Sports Fee | ||
| $6,000 | TPA Fee | ||
| $98,000 | Total cost (premium and fees) | ||
Transparency That Works in Your Favor
CBIZ Sports partners with athletic programs to deliver clarity, control, and smarter insurance strategies.
Contact us to see how a fee-based approach could benefit your program.
This article may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.
