Why Broker Fee Transparency Is Back in Focus for Freelancers

The point is especially relevant for freelancers, consultants and sole traders who rely on brokers to navigate professional indemnity, public liability, cyber and other business cover. Many self-employed professionals do not have in-house finance teams or risk advisers. When cover is complex, they are often making decisions based on the explanations and recommendations provided to them at renewal time.

Under the disputed approach, the draft code would not fully extend proactive remuneration disclosure to every small business client for every type of general insurance product. Critics argue that this leaves an important gap: unless a business owner already knows to ask how a broker is paid, they may not receive a clear dollar figure upfront for commission or other remuneration connected with the policy.

For freelancers, the practical issue is not whether commissions are automatically problematic. Broker remuneration can be a legitimate part of how insurance advice and placement services are funded. The concern is transparency. If two policies appear similar, understanding whether advice is being paid for through a client fee, an insurer commission, or a combination of both can help a freelancer make a more informed judgement about value, service and independence.

This development also extends the wider affordability conversation affecting small businesses. Premiums for professional and liability cover can be a material annual cost, particularly for freelancers working in higher-risk advice, design, technology, health, education or construction-adjacent roles. When cash flow is tight, it is tempting to focus only on the cheapest premium. A better approach is to compare the premium, excess, exclusions, retroactive dates, limits, contractual requirements and the cost of advice together when comparing insurance options.

The consultation period on the draft code is expected to run until 7 August 2026, with the revised code targeted for commencement on 1 January 2027. Freelancers do not need to wait for the final wording to protect their own position. At the next renewal or new policy discussion, ask for remuneration details in dollars, confirm who the broker acts for, request alternative quotes where available, and keep a written record of the advice provided. Clear questions now can reduce confusion later if a claim or dispute arises.