What are the charges imposed by brokers for their services in procuring insurance coverage called?

The charges imposed by brokers for their services in procuring insurance coverage are commonly referred to as broker fees. These fees represent the compensation that brokers receive for their expertise and efforts in connecting clients with appropriate insurance products.

Broker fees can cover various tasks, including conducting risk assessments, providing guidance on policy options, and managing the overall procurement process. This fee structure is essential because it aligns the broker’s incentives with the needs of the client, ensuring that the broker actively seeks the most suitable coverage options available in the market.

While other terms like service charges, consultation fees, and insurance broker commissions relate to costs associated with insurance services, they do not distinctly capture the nature of fees charged specifically for the brokerage service of securing coverage. In the context of insurance brokerage, distinguishing "broker fees" is important as it clearly indicates the role of the broker in facilitating insurance transactions.