Several factors contribute to the cost of business insurance for insurance agents, including the size of your business and its risks. Cost estimates are sourced from policies purchased by Insureon customers.
General liability costs for insurance agents
Insurance agents and brokers pay a median of less than $30 per month, or $350 per year, for general liability insurance. This policy provides protection for third-party bodily injuries, property damage, and advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your insurance office, and costs less than purchasing each policy separately.
Industry risk drives the cost of general liability insurance
Among insurance agents that purchase general liability with Insureon, 31% pay less than $300 per year and 60% pay between $300 and $600 per year. High-risk businesses tend to pay more for general liability insurance.
Common general liability policy limits for insurance agents
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most insurance professionals (86%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Business owner’s policy costs for agents
Agents and other insurance professionals pay a median of about $40 per month, or $500 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents.
The cost of a BOP depends on your business property
Among insurance professionals that purchase a business owner’s policy with Insureon, 13% pay less than $300 per year and 61% pay between $300 and $600 per year. The cost depends primarily on the value of your business property.
Which BOP limits do insurance agents choose?
Most insurance professionals (87%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.
Errors and omissions insurance costs for insurance professionals
The median cost of E&O insurance is about $45 per month, or $550 annually, for insurance professionals. This policy, also known as professional liability insurance, can protect your business from work mistakes that negatively impact clients. The cost depends on your insurance specialty and other key operations factors.
The cost of errors and omissions depends on your risk
Among insurance professionals that purchase errors and omissions insurance with Insureon, 26% pay less than $500 per year and 47% pay between $500 and $1,000 per year. The cost increases depending on the risk of a business being sued over a professional mistake.
Which errors and omissions insurance limits do insurance agents choose?
Most insurance professionals (84%) choose errors and omissions policies with a $1 million per-occurrence limit and a $1 million aggregate limit. Another 6% choose policies with a $2 million per-occurrence limit and a $2 million aggregate limit.
Workers’ compensation insurance costs for insurance professionals
To meet your state’s requirements and avoid penalties, insurance agencies with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of less than $40 per month, or about $460 per year for insurance agents and brokers, policy cost is determined by your number of employees and occupational risk, among other factors.
Workers’ comp costs depend on the number of employees
Among insurance agencies that purchase workers’ compensation insurance with Insureon, 17% pay less than $300 per year and 47% pay between $300 and $600 per year. The cost varies based on the number of employees and the level of risk involved with their jobs, among other factors.
Compare quotes from trusted carriers with Insureon
Insureon’s licensed insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of life and health agents, claims adjusters, and property and casualty agents.