Offering employer sponsored and voluntary insurance programs to your employees should not be confusing or complicated. Many employers use a broker to help select, enroll, and manage benefit programs. Choosing the right broker is a crucial step in building the right benefits package for your company.
Brokers are paid a commission by the insurance carrier and many insurance carriers will only offer coverage through a broker. Commission fees from the carrier can be paid as a per employee per month fee or a percentage of the total monthly premium based on enrollment. While the way the carrier pays the broker may vary, employers will not pay a fee directly to their broker.
While commission is paid from the insurance carrier, some brokers will charge a fee for additional services such as enrollment platforms, HR systems, and certain compliance documents.