Insurance for Insurance Agencies and Brokers
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What Insurance Do Insurance Agencies and Brokers Need?
Errors & Omission Insurance (E&O), is a type of professional liability insurance. It protects you from being legal claims that you made a mistake when offering your services. E&O covers your defence fees & settlement costs.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Frequently Asked Questions
How much does insurance cost for Insurance Agencies and Brokers?
The cost for an insurance agent's Errors & Omissions coverage is most often rated on the premium sold per year and the types of insurance products provided. Most insurance carriers will also review industry experience and loss history.
Why do I need insurance as an Insurance Broker?
Insurance is a massive financial service utility for the modern world. It is insurance agents who are most responsible for placing the right coverage for their customers. If an error is made in the process the liability exposure is much larger than for other professional services. Errors could arise when:
- Advising clients on their insurance needs
- Pairing clients with the appropriate insurer
- Collecting premiums
- Renewing client policies
During these regular duties, and with many others, your business can make mistakes. For example, you may forget to suggest an Employment Practices policy when selling D&O, which later turns out to be necessary. Even if you do not represent yourself as a full-service advisor, the client could make a claim against you for negligence in the placement of management insurance.
Do I need Cyber Liability as an Insurance Agency?
Business transactions over the internet are key to business function today, and it's nearly impossible to provide a professional service without utilizing the infrastructure. Unfortunately, there are countless bad actors also utilizing the internet and its easy access to the information. Cyber Liability insurance protects your digital footprint and is there to keep you in business if your customer's information is compromised.
How to get a certificate of insurance as an Insurance Agent?
To get a certificate of insurance, simply call your business insurance provider and explain your needs. Explain the minimum coverage amounts and the agent will confirm if the policy meets your requirements.