Insurance Agent Invoice Template — Commissions, Fees
Commission invoicing to carriers, broker fees direct to clients, service fees for ongoing account management, renewal commissions. The template handles agent and brokerage billing with the disclosure required by most regulators.
Open the free generator → Need a quote first?
Free forever · PDF export · Multi-currency · Runs in your browser
What goes on an insurance agent's invoice
●Commission (per policy). Carrier name, policy number, premium, commission %.
●Broker fee (paid by client). Must be disclosed; per policy.
●Service fee / account management. Recurring.
●Renewal commission. Often lower % than first-year.
●Override commission (managing agency). If applicable.
●Endorsement / mid-term change commission. Pro-rated.
How agents and brokerages usually bill
Commissions: typically paid by carrier on a statement schedule (you don't invoice the carrier).
Broker fees direct to client: invoice on policy bind, payable before policy effective date in many cases.
Service fees: monthly or quarterly per agreement.
Always disclose broker fees clearly on the invoice — required by most state insurance departments and regulators.
Tax notes
Insurance commissions are typically exempt from sales tax in most US states (but income-taxable). Broker fees may be subject to sales tax in some jurisdictions. UK insurance is exempt from VAT. Check your specific rules.
Frequently asked questions
Do I invoice commissions or just receive statements?
Commissions from carriers come via the carrier's statement — you don't invoice them. You may invoice your managing agency or sub-producers for splits.
How do I disclose a broker fee?
Itemise on the invoice: 'Broker fee (in addition to premium and commission)'. Many state regulators require a signed broker fee agreement before charging — keep a copy.
Should I invoice service fees?
Yes — recurring service fees (account management, claims advocacy) are typically invoiced monthly or quarterly. State the scope in the service agreement.
How are split commissions invoiced?
If you split with another agent or brokerage, internal commission split agreement. The carrier pays one party; the parties settle internally with invoices and statements.
Sample wording for an agency invoice
Realistic, copy-and-paste-ready line items insurance agents typically use. The figures here are ballpark for a mid-cost US market, so adjust them to yours.
●New-policy commission — auto + home bundle, annual premium $4,800 (15% first-year commission, paid by carrier): $720
●Renewal commission — 2026 commercial GL policy renewal (10% renewal commission, paid by carrier): $1,250
●Direct-bill service fee — small commercial account, monthly servicing (per agency-client agreement): $185
●Endorsement processing — 4 mid-term policy changes (per change, $25 each): $100
●Certificate of Insurance issuance — 12 COIs requested this quarter (per cert, $15 each): $180
●Claims advocacy — assisted client on $35k property claim (billed per fee agreement, 4 hrs at $125/hr): $500
●Quarterly risk-review meeting (included in agency-of-record agreement): no charge
Notes: Commissions paid by carriers separately on commission statements; this invoice covers fee-based services not commission-eligible. Agency-of-record letter on file. Surplus-lines tax on E&S placements remitted separately. Net 30; 1.5%/month late fee. Insurance is a regulated product; written agency-of-record agreement governs.
How the two revenue streams pay out
Insurance income breaks into two streams: commissions and fees. Commissions are paid by the carrier (not the client), typically Net 30 from the policy effective date, on a monthly commission statement. New-business commissions run 10-20% of first-year premium; renewals 5-15% depending on line of business and carrier. Personal-lines commissions are smaller per-policy but volume-heavy; commercial-lines commissions are larger per-policy but require deeper service.
Fee-based services (agency-of-record retainers, claims advocacy, risk-management consulting, certificate processing fees) bill direct to the client and pay Net 30 from invoice. Commercial agency-of-record relationships are the stable revenue: $5k-50k/year flat-fee per account for ongoing servicing on top of commission revenue. Captive agents (State Farm, Allstate) operate on different commission schedules than independent agents; brokers placing into E&S markets work on yet different terms with surplus-lines tax considerations.
Five billing mistakes that cost agencies revenue
●Treating commission as the only revenue line. Pure-commission models depress agency revenue. Fee-for-service work (claims advocacy, risk consulting, COI management) bills the client directly at hourly or retainer rates — separate from commission. Many top agencies are 60-70% commission, 30-40% fees.
●Forgetting to track endorsements as billable. Mid-term policy changes (add a vehicle, change an address, add a sub) generate carrier endorsements and your agency's processing time. Bill a service fee ($25-75 per endorsement) on commercial accounts; many agencies absorb endorsement work on personal lines but charge on commercial.
●Not documenting the agency-of-record relationship in writing. Agency-of-record letters (AOR) authorise you to handle the policy with the carrier. Without a written AOR, another agent can replace you mid-term and capture the renewal commission. Get the AOR signed at onboarding and update at every renewal.
●Skipping claims-advocacy work. When a client has a claim, advocating to the carrier (gathering evidence, filing supplements, escalating denied claims) is high-value work that justifies fee-based billing. State in agreement: 'Claims advocacy beyond standard reporting billed at $X/hr.' Free advocacy training is unsustainable.
●Letting carriers pay commission on cancelled policies. When a client cancels mid-term, carriers claw back the unearned commission. Track every policy's cancellation status; reconcile commission statements monthly. Otherwise the year-end commission true-up surprises you.
US tax notes for insurance agents
Insurance-agent commissions are not taxable as sales tax (commission income to the agent, not service revenue). Surplus-lines taxes on E&S placements are remitted to the state separately by the placing broker (not the retail agent typically). Fee-based services for insurance work are non-taxable in most states (professional service). The gross-receipts regimes in Hawaii (GET), New Mexico (GRT), and Washington (B&O) are the exception, since they reach insurance-agent service revenue too.
Federal: Agent income is 1099 if independent contractor with the agency, W-2 if employed by an agency, or self-employed schedule C if running your own agency. Insurance-agent deductibles often missed: state licensing fees (renewable every 2 years in most states), E&O insurance (substantial annual premium for agents), continuing-ed (a state requirement, typically 24+ hours per cycle), agency-management software (Applied, Vertafore, EZLynx — a major annual licence cost), prospecting and lead-gen platforms (EverQuote, NetQuote, Zillow real-estate-agent leads if doing insurance there), CRM, and the under-claimed line for client retention gifts and continuing-relationship costs (closing gifts, holiday outreach, anniversary touches) which are real client-retention investments and deductible up to limits.
Not tax advice — confirm specifics with your CPA or state department of revenue.
More questions from agents and brokers
How do I price fee-based services separately from commissions?
Disclose both. State to the client: 'Carrier pays commissions on placement; agency bills service fees for claims advocacy, risk consulting, and account management.' Some states require fee-disclosure documents on commercial accounts above a dollar threshold. The fee-based revenue is the difference between commodity-agent and trusted-advisor positioning.
Can I charge for issuing certificates of insurance?
Yes — and many agencies do on commercial accounts. Small COI fees ($10-25 per certificate) capture the real labour of issuing them; some accounts request 50+ COIs per year. Personal-lines and small-commercial accounts typically absorb COI work; mid-market and large commercial accounts pay COI fees.
Should I refuse high-risk clients?
Sometimes — at the underwriting level. If carriers can't write the risk competitively, refer to surplus-lines markets and charge for the placement expertise. If the risk is uninsurable or the client is engaging in unethical practices that increase risk dishonestly, walk. Your E&O policy doesn't cover collusion with the insured against the carrier.
How do I handle a client who wants to switch agents to me mid-term?
Get a signed agency-of-record letter (AOR) before doing any work. The AOR directs the carrier to transfer servicing rights to you; without it you have no commission rights and you're servicing the policy for free. Don't start substantive work until the AOR is signed and acknowledged by the carrier.
Other professions
→ Contractors → Electricians → Plumbers → Photographers → Graphic designers → Web developers
Ready to invoice?
Open the generator. Fill in your details. Export the PDF. Two minutes.