Terms of Engagement for Client Letterhead - Letter of Appointment - Updated

Sep 1, 2026

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Letter of Appointment (LOA) sets out the contractual relationship between a client and an insurance broker. It defines the appointment start date, the broker’s authority to arrange insurance requirements, and responsibilities including risk identification, policy coverage changes, renewals and cancellations, claims management support, and statutory insurance advice. The document also specifies information sharing with the insurer(s), replaces prior intermediary arrangements, outlines appointment validity conditions, remuneration/fee models, cancellation treatment, payment terms, and limits of advice based on the client’s objectives and circumstances.

LanguageEnglish

CategoryLetters

FormatDOCX

Pages4

Reading Time2 min

AccessFree to download

Letter of Appointment (LOA) Including Terms of Engagement

Appointment and Scope of Services

Our Services

Remuneration and Payment Terms

Our Advice to You

Period of Engagement

LETTER OF APPOINTMENT (LOA) INCLUDING TERMS OF ENGAGEMENT CLIENT LETTERHEAD [Date] To Whom It May Concern: Letter of Appointment Effective from [INSERT DATE], we/I appoint [INSERT NAME AND ADDRESS OF BROKER ENTITY] to manage all our/my insurance requirements in respect of the following services; (DELETE THOSE THAT DO NOT APPLY) Advising in matters relating to risk identification and transfer; Arranging our general insurance requirements; Negotiating policy coverage, policy renewal, policy changes and cancellations; Reviewing and advising in matters relating to claim circumstances and management; Advising in matters relating to risk management; Advising and arranging statutory insurances as required eg. Workers’ Compensation; Attending to correspondence and the provision of advice as may be required. We/I acknowledge having read and accepted the Terms of Engagement and Financial Services Guide produced by [INSERT NAME OF BROKER ENTITY] and outlined on the following page. We/I authorise our current insurer(s) to provide [INSERT NAME OF BROKING ENTITY] with all information they request regarding our insurances and claims history in respect of the following classes of insurance. [LIST CLASSES OF INSURANCE and NAME OF INSURER and NAME OF INSURED IF DIFFERENT FROM THE NAME ON LETTERHEAD] This appointment replaces any existing arrangement in place between us and any other insurance intermediary formally appointed to advise on or arrange or negotiate our insurance requirements as described above. This appointment is invalid if the insurances described above have not been arranged by the insurance broker appointed by this letter or if this letter is not submitted to the insurers within 90 days of the effective date described. Yours faithfully, Client name Title/capacity of the company’s representative **for ‘broker’, read also authorised representative, if applicable Terms of Engagement for [insert Client’s name, ABN. No.] The Terms of Engagement used will depend upon the complexity and nature of the client and the services which the NIBA member provides. The following example can be adapted to suit members’ particular needs. In regard to, [insert details of the policies as there may only be one or some of the policies that the broker is looking after under a binder arrangement but not the whole program] [insert name of broker entity] will act on your behalf as an insurance broker. [OR] When providing advice, we are acting on behalf of the insurer and not the client. Our Team [insert details of the team providing the service (if applicable)] Our Services As your insurance broker, we will provide the following services; [Modify to reflect the services you will provide] Pre-placement services Help you identify and assess your risks and develop a proposal to submit to a potential insurer/insurers; Providing advice on risk mitigation and management strategies; Insurance placement and premium financing Seek insurance quotes (for more information on how we will seek quotes see “Approaching the Market”); Negotiate policy coverage and policy renewal annually or as otherwise agreed in your service plan; Seek to bind coverage where you have authorised us to do so (except in urgent circumstances where unless you instruct otherwise, we may choose to bind insurance on your behalf if we consider that is in your best interests); Obtain and provide a quotation for premium funding; Post-placement services Prepare and manage claims if an insured event occurs; Advocate on your behalf during the claims process; Facilitate policy changes and/or cancellations as per your instructions; Approaching the market We will seek quotes from the broader general insurance market before making a recommendation. We have arrangements with [INSERT NUMBER HERE] insurers and underwriters, which enables us to find the right insurance product for you. [OR] We have arrangements with a limited number of insurers and underwriters. When providing you with our recommendation we w

FAQs

What services does the insurance broker provide under the LOA?

The broker advises on risk identification and risk management, arranges general insurance, negotiates policy coverage/renewals/changes/cancellations, and supports claims circumstances and management. The broker may also advise and arrange statutory insurances and attend to correspondence as required.

When does the appointment become effective and when does it become invalid?

The appointment is effective from the inserted start date. It becomes invalid if the described insurances have not been arranged by the broker appointed by the letter, or if the letter is not submitted to insurers within 90 days of the effective date.

How is the broker remunerated and what happens on policy cancellation?

Remuneration is typically a commission based on a percentage of the premium (excluding relevant taxes/charges/levies), or a fee charged in lieu of commission, possibly including both commission and a fee. If a cover is cancelled before the insurance period expires, the broker may refund only the net return premium received from the insurer, without refunding brokerage or broker fees, and a cancellation processing fee may apply.

Sep 1, 2026

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