How does Maloney & Company, LLC get paid for its services?

Its a mystery to many firms how an insurance broker or agent gets paid. Here’s how:

  1. Commission: For the commercial policies arranged by Maloney & Company, LLC, we receive a commission that ranges from 10% to 20% of the annual policy premium. This cost is “built into” the premium charged by the insurance company. This is one of the great reasons to work with a specialist firm like Maloney & Company, LLC—since you pay the same premium regardless of which broker you work with, you might as well get the extra attention and knowledge of a firm like ours.
  2. Incentive overrides: One of the tools that insurance companies like to use is to offer extra money to brokers or agents if they meet certain sales goals. These goals often include:
    • writing a certain amount of new business
    • having a certain percentage of that insurer’s inforce account renew coverage
    • having a loss ratio below a certain percentage.
  3. Shared commissions or fees: Maloney & Company, LLC receives payments from various other sources for services in connection with products we help arrange. For instance, we receive payments on long term disability policies, group health policies and life insurance policies that are placed by other brokers or agents with our assistance. We also receive payments from Imperial Premium Financing Specialists, Inc. for our work in connection with the handling of premium financing contracts.



Required NY wording:
Maloney & Company, LLC (“the producer”) is an insurance producer licensed by the State of New York. Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.
Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by another third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensation.
The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer.