In fact, Pilot Insurance is the largest of the companies in our brokerage...I've been insured with them myself for coming up to 6 years! 
What you state above CAN happen, but rarely does. Each accident is different and can't possibly be looked at individually here.
Brokers DO NOT charge clients more for their services. This is unfortunately another misconception about brokers. Brokerages are paid a set percentage of the premiums written for an insurance company. However, rates are strictly regulated and you will find no difference getting a Pilot quote from my office in Toronto than from a brokerage operating in Sudbury with everything (vehicle/coverage etc.) being the same.
If a broker were to quote you the lowest premium of all the companies they represent, let's say $1000 and you get a quote with a direct writer for $950, it is not the brokerage charging you the $50 difference for it's services, the $50 is only a difference in price.
The point I was trying to make is that a broker, including yours, is supposed to be an insurance advisor to you and should be there to answer all of your questions and not scare you into thinking you shouldn't ask. It's this relationship that is the major difference in the relationship between broker & client vs. client & direct writer.
Brokers DO NOT charge clients more for their services.Sure they do. Every year along with my policy I get a disclosure form stating that the brokerage company is receiving a commission anywhere from 10 to 20% from the insurance company that underwrites my policy. So you say:
Brokers DO NOT charge clients more for their services Correct. But what you don't say is that you receive a commission from the company, obviously. It amounts to the same thing.
Now I'm still with a broker because for me there is still value in their service even though I might save a few bucks with a direct insurer. I have tried numerous options and I believe the broker system is better on the claims end of things which is really the main service one is buying.
The point I was trying to make is that a broker, including yours, is supposed to be an insurance advisor to you and should be there to answer all of your questions and not scare you into thinking you shouldn't ask.Of course. But their first obligation is to the company. Example: You as a broker get a call from one of your customers insured by the Pilot. They say they hit something like a tree or a rock and there might be 3K in damage. They ask what is their best option economically. Submit a claim, pay the deductible and get the insurance company to pay for the repair or just suck it up and pay out of pocket because future rate increases would exceed the cost of repair. Oh, and by the way the girl friend was a little banged up, but is fine now.
What the h*ll are you going to say to that
Legally, the Pilot which has contracted to insure your client is on the hook for any injuries that the girl friend might have sustained and she has 6 YEARS to bring any claims forward in Ontario (period of limitations). The Pilot needs to know that the potential of a law suit (loss) exists. The Pilot has the right and wants the right to begin a defense of any possible claim and to minimize any loss from it. Your non disclosure of any knowledge of an event that puts them at liability no matter how remote supersedes any off hand privacy that you have with a client. Read the policy and the brokerage agreements.
