Accommodation Line

Definition of 'Accommodation Line'


An addition or change to a standard insurance contract. The change is suggested, or requested, by either the broker or the insured as an addition to the plan to fit their individual needs. In this type of agreement, the broker usually receives a higher commission (or bonus), the client receives greater coverage and the insurer maintains the business of a valued customer.

Investopedia explains 'Accommodation Line'


This type of addition is granted to the most highly valued of customers and brokers. It can be looked at as a kind of 'thank you for your level of business' from the insurer for the customers loyalty to their company. The cost of the addition to the insurer will be less than the cost assumed if the client takes his/her entire account to a competing compay.



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