If you’ve ever received an aviation insurance quote and noticed two brokers involved, you’ve likely encountered co-brokered aviation insurance.
It’s not uncommon, especially in specialized markets, but many aircraft owners don’t fully understand what it means, why it’s done, or how it impacts their coverage and cost.
In this guide, we’ll explain the co-broker (or co broker) arrangement in aviation insurance, when it’s beneficial, when it’s not, and what you should ask if you find out your policy is being co-brokered.
What is Co-Broker Aviation Insurance?
A co-broker arrangement is when two licensed insurance brokers work together on the same account. In aviation insurance, this usually happens when:
- One broker has the client relationship but not the market access or expertise.
- The other broker has the carrier appointment or specialized knowledge needed to place the risk.
The arrangement allows both brokers to share in the work, and the commission, while ensuring the client gets access to the best coverage options.
How Co-Broker Arrangements Work
Step 1: The primary broker (the one you contacted) gathers your information.
Step 2: They realize they can’t place your risk directly with the right carrier — maybe because they lack a carrier appointment or specialized aviation experience.
Step 3: They reach out to a second broker who can access the carrier or has niche expertise.
Step 4: The second broker works behind the scenes to obtain quotes and place coverage.
Step 5: The primary broker presents the final quote to you, the client.
Co-Broker vs. Wholesale Broker
While similar, there’s a subtle difference:
- Wholesale Broker: Works with many retail brokers, usually as a B2B-only partner.
- Co-Broker: A case-specific partnership between two brokers for a single client or account.
When Co-Brokering Makes Sense
- Specialized Aircraft: e.g., warbirds, antique aircraft, or experimental jets.
- Unique Operations: e.g., aerial firefighting, agricultural spraying, international ferry flights.
- Geographic Restrictions: Some carriers require certain state licenses or have regional broker appointments.
- Relationship-Driven Placements: A second broker may have a long-standing relationship with a carrier underwriter that improves terms.
Example Scenario
Let’s say you own a vintage P-51 Mustang and contact a local broker who’s handled your business and auto insurance for years. They don’t have direct access to the handful of carriers that insure warbirds.
Instead of turning you away, they bring in a second broker who specializes in warbird insurance and has direct appointments with the right carriers. Together, they place your policy, and both share the commission.
Advantages of Co-Brokering
- Access to More Carriers: Increases your chance of finding the right fit.
- Specialized Expertise: The second broker brings deep aviation knowledge.
- Preserves Your Relationship: You can keep working with your trusted local broker while benefiting from specialized support.
Potential Downsides
- Extra Layer of Communication: More people involved can slow responses.
- Commission Splitting: While this usually doesn’t raise your premium, it can sometimes mean neither broker has full incentive to service the account long-term.
- Lack of Transparency: Some brokers don’t clearly disclose when co-brokering is being used.
Questions to Ask if Your Policy is Co-Brokered
- Why is a second broker involved?
- Which carrier is the second broker accessing?
- Will I interact directly with both brokers or just my primary?
- Does this affect my premium or coverage terms?
- What experience does the second broker have with my type of aircraft/operation?
BWI’s Position on Co-Brokering
At BWI Aviation Insurance, we prefer to place policies directly with carriers whenever possible. Our large market access and carrier relationships mean we rarely need to co-broker.
That said, we’re not opposed to co-brokering when it truly benefits the client, for example, if there’s a highly specialized market segment we don’t directly access. In those cases, we only work with trusted partners and remain fully transparent with our clients.
Why Transparency Matters
Unfortunately, in some cases, co-brokering is used simply because a broker doesn’t have the right appointments or isn’t willing to shop the market themselves. This can lead to unnecessary middlemen in the process.
That’s why it’s important for clients to ask questions and ensure the arrangement is in their best interest.
Final Thoughts
Co-broker aviation insurance can be a win-win, giving clients both the personal service of their primary broker and the specialized access of a second broker. But like anything in insurance, it works best when it’s transparent, necessary, and managed by professionals who put the client’s needs first.
Want to work with a broker who has direct carrier access but also knows when to bring in the right partner? Contact BWI Aviation Insurance at 800-666-4359 or request a quote online.
Continue Reading
