Lockton advocates complete disclosure regarding its sources of income to clients.
Lockton may receive compensation in a number of ways, including: (1) commissions paid by an insurer, calculated as a percentage of premiums, or; (2) negotiated fees paid by the client in-lieu of or in addition to commissions. These commissions or fees received are for the placement/renewal of a client's insurance/risk management program, day-to-day servicing, risk control services and/or other services Lockton has agreed to provide on a client's behalf.
Lockton may also be eligible to receive other forms of compensation such as incentive or contingency payments, bonuses, supplemental commissions or service fees from insurance companies, other intermediaries or other third parties, which may be affiliated with Lockton, as a result of being an insurance broker (collectively “Additional Compensation”). Lockton may also receive interest or investment income on funds temporarily held by it, such as premiums or return premiums and/or service fees or other compensation from premium finance companies for administrative services provided to or on behalf of premium finance companies relative to the financing of client insurance premiums.
Should you have additional questions regarding the compensation Lockton receives as it relates to your account, please contact your Lockton representative.