Agent and Broker Compensation

Federated Insurance Company of Canada sells both commercial and personal insurance as a Direct writer (using employee agents) in all provinces except Newfoundland and Labrador.


Agents earn their commission out of the insurance premium you pay. Commissions paid on policies issued by Federated Insurance are calculated at a fixed percentage of the premium. The range of commissions paid varies by the type of business, as described in the chart below:

Personal Insurance:
Private Passenger Automobile3.5% – 6%
Personal Household & Property5% – 10%
Personal Umbrella Liability5% – 10%
Commercial Insurance:
Commercial Automobile3.5% – 8%
Commercial Property8% – 18%
Commercial General Liability8% – 18%
Commercial Umbrella Liability3.5% – 8%
Other Commercial classes of business3.5% – 18%

Contingent Profit Commissions

As a Direct Writer we do not have Contingent Profit Commissions based on the volume of our Business as our Employee Agents have only one choice of Insurer to place business with.

Our Employee Agents (based on their tenure) may be eligible for a Performance Bonus based on the Loss ratio of their book of business, but as mentioned have only one choice of Insurer with whom to place the business.