Accommodation Line
What Does Accommodation Line Mean?
An accommodation line refers to a modification in an insurance policy that is approved by the insurance company, even though it would not typically be granted under ordinary circumstances. This approval is a recognition of the policyholder’s good standing with the company.
Insuranceopedia Explains Accommodation Line
Like in other industries, some clients are valued more than others. This may be due to their significant contribution to the business or their long-standing relationship with the company. The same applies in the insurance industry, where certain clients receive perks and privileges not offered to others.
If a person is considered a valued policyholder, they may request to modify their policy through a broker. This modification could add coverage to the policy. If the broker successfully arranges the change with the insurance company, they receive a larger commission.
