We can connect you with insurance coverage specifically designed to protect a small business like yours.
General Liability Insurance for Insurance Agents
As you probably know, allegations of wrongdoing from a single client can lead to a costly lawsuit, whether or not you were actually negligent in your work. With adequate business insurance in place to protect you, however, you won’t have to pay for legal costs out of your pocket. Regardless of what kind of insurance you offer your clients, General Liability Insurance can protect your business from accusations that you or a member of your team caused a client financial losses or property damage.
Because most insurance agents typically enjoy fairly low risk profiles at their offices, they often qualify for a Business Owner’s Package, or BOP, which combines General Liability Insurance with Property Insurance at a discounted premium. An insureon agent can help you determine whether your business’s General Liability Insurance risks can be managed through a BOP.
One thing to keep in mind about General Liability policies is that they do not cover you if you face allegations that you were professionally negligent; that is, this insurance protects physical damage only. See below for how to insure yourself against mistakes and omissions.
If you expand your business to include other insurance agents or support staff, be sure to check that your General Liability policy offers coverage for them as well. As you can likely understand, it’s generally a good idea to check in with your insureon agent whenever you make major changes to your business, as your insurance needs might have shifted.
Professional Liability Insurance / Errors & Omissions Coverage for Insurance Agents
As an insurance agent, you understand how today’s litigious society can lead to major legal trouble if an unsatisfied client believes your negligence caused him or her to suffer financial losses. In order to protect yourself from lawsuits relating to your professional performance, you can invest in Professional Liability Insurance (also known as Errors and Omissions Insurance).
Errors and Omissions Insurance protects your insurance agency in the event that one of your clients claims that your advice regarding insurance caused his or her a financial loss. For example, if you recommended one policy limit, the client chose that limit, and then the client ended up needing more coverage, he or she might sue you for the difference.
Your E&O policy would cover you by paying for the cost of mounting a legal defense against those client claims and by paying for any settlements or judgments if you are found liable, up to the limits of your policy.
Even if you’ve never been sued and are confident in the quality of your advice, Errors and Omissions (aka Professional Liability) Insurance is still a good idea. It only takes one lawsuit to cost your business a lot of money and time – and potentially tarnish your reputation.
Umbrella Insurance / Excess Liability Insurance for Insurance Agents
As an insurance agent, you may already understand how Umbrella Insurance can provide a lot of extra coverage for a bargain price. In case you’ve never worked with Umbrella coverage, it works like this: by purchasing a single policy, you can extend the coverage amounts on multiple of your existing policies.
Umbrella Insurance coverage kicks in when you are found liable for an amount greater than the limit of an existing policy. If, for example, you have $250,000 of General Liability Insurance and you’re found liable for $500,000 in expenses, your Umbrella Insurance policy would pay out the additional $250,000 not covered by your General Liability policy.
Most often, Umbrella (also called Excess Liability) Insurance policies can be purchased in increments of $1 million. When you purchase an Umbrella policy, you can apply its coverage to more than one existing policy.
It’s important to note, however, that Umbrella Insurance cannot be applied to Professional Liability (E&O) policies; if you want a higher limit on that insurance, you need to purchase a policy with a higher limit.
Worried that your coverage might not be enough? Our experts will provide you with an affordable way to extend your insurance limits with architecture, engineering, and design Umbrella Insurance policies.
Workers’ Compensation Insurance for Insurance Agents
Most states require insurance agents (and really, all businesses) to carry at least some form of Workers’ Compensation Insurance – in some places, you’ll be required to carry this insurance even if you’re the sole employee of your business.
But even if your state’s laws do not explicitly require you to have Workers’ Compensation Insurance, it may be a wise investment for your business. While insurance agencies tend to have a low risk profile, they can still expose workers to certain risks. A Workers’ Compensation policy protects your employees (whether they are fellow insurance agents or support staff) from injuries and illnesses they incur on the job (including carpal tunnel syndrome and other repetitive use injuries office workers often face).
One question it’s important to ask about your Workers’ Compensation coverage is whether you need to include contract workers in your policy as well as full-time and part-time employees. Again, this requirement is mostly regulated by state law, so the answer will depend on where you do business.
Additionally, you may be able to save money on your premium by excluding yourself on your policy. Ask your insureon agent whether this strategy makes sense for your business.
Practice what you preach.
You’ve probably heard the expression “The cobbler’s wife goes barefoot,” and chances are you don’t want it to apply to your business. Make sure you provide the same kind of protection for yourself and your business as you extend to your clients.
Don’t underestimate the value of E&O Insurance.
Even the most careful insurance agents can make mistakes – and even those who don’t make mistakes could face lawsuits from unhappy clients. Avoid the unpleasantness (and high cost) of professional liability lawsuits by protecting yourself from them in advance.
Take advantage of your insider knowledge.
Our insureon agents love to talk about insurance, so be sure to ask the nitty-gritty questions you have about your coverage options. Knowing how insurance works gives you an advantage when it comes to purchasing coverage for yourself, so use that advantage to find excellent coverage that protects your assets and gives you peace of mind.