Business Insurance for Insurance Agents

Being an insurance agent has its benefits. However, it also comes with unique risks. But have you wondered about the risks you face as an insurance agent? Does this mean that you need business insurance too?  

Yes! You guessed that right! Agents do need insurance for their business. Not only do agents provide coverage, but they also need business insurance for themselves.

Why, you ask? Because, just like any other business, you need coverages for property damage and liability claims.

According to InvestopediaBusiness coverage protects businesses from losses due to events that may occur during the normal course of business 

Without any further ado, let’s jump into the various types of business insurance for agents. 

General Liability Insurance

 According to the Hartford, general liability insurance (GL) helps protect businesses from bodily injuries as well as property damage. GL also gives protection against related lawsuits that businesses face  

But why would agents need general liability insurance? 

Agents are not free from risks. They can face risks in any instances. For example, you might cause customer injuries, damage their property, or even cases like advertising injuries. General Liability insurance insures agents from these risks. You can benefit from this insurance as it covers losses and expenses when damage or injuries occur.

 

Accidents can occur anytime. It is no exception for agents. What if a client trips over a wire and breaks off his ankle? Well, you would not have to worry about it too much if you have general liability insurance.

Let’s assume you happen to damage your client’s laptop by accident. What would you do? Pay the compensation out of your pocket? NO! because general liability insurance will cover it for you. 

When you advertise for yourself, there might be chances of accidental advertising. For instance, you copy your competitor’s slogan. This mistake done by you will be covered under this policy. 

That’s just not it!

There are other essential insurance policies that agents can embrace.

General liability insurance covers agents from risks. However, it doesn’t provide complete protection. Consider other policies as well.

Business Owner Policy

Another essential business insurance is the business owner policy (BOP). BOP is a must for agents. Why? Because it provides more comprehensive coverage for their risks 

According to Insurance Information Institute, BOP includes property insurance, business interruption insurance, and liability protection. Dealing with clients opens gates for third party risks.   

BOP is a combination of general liability insurance and commercial property insurance. This policy covers property risk and standard liability in a single plan.

Wondering what risks it covers? This policy covers damage to your business’s property, lawsuits related to customer and property damage as well as advertising injuries.

A BOP covers you from risks associated with customer property damage, third party bodily injuries, and advertising injuries. Dealing with clients opens gates for third party risks.

Your business property is an asset to your business. For its protection, BOP can help you cover unexpected expenses. A BOP can pay for the damages caused due to fire, theft, or other setbacks.

BONUS: A temporarily closed business can face financial loss. A business interruption insurance will help you cover this loss.

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

Errors and Omissions Insurance

Errors and Omissions (E&O) Insurance protects businesses from lawsuits by clients from errors that occurred in by you.

So, what does E&0 insurance covers as business insurance?  

Everyone makes mistakes. Mistakes can happen from agents as well. If your clients sue you for a mistake you’ve made, you can cover it through E&O insurance. This insurance will help you avoid significant losses. 

For instance, a client of yours claimed that the advice you gave didn’t provide enough coverage. In this case, E&O insurance can save you from financial losses. Additionally, this insurance can help you pay for the legal fees. Agents are not immune to professional negligence.

Worker’s Compensation Insurance

There is a requirement for this business insurance in every state. Workers’ compensation protects agents from work-related injuries.

Just like property, employees are also valuable assets for your business. If your employee gets injured at the office, you need to cover the losses. With this insurance, you can cover the medical costs for them.

Is workers’ compensation insurance a must for all insurance agents?   

No! Independent agents or self-employed agents don’t need to get this business owner’s policy. However, you can get it to protect yourself.

Let us take Georgia, for example. The state law requires every business with three or more employees to provide workers’ compensation insurance. With limited exceptions and several special considerations, this business insurance is applicable.  

Summing it up

Business insurance also known as commercial insurance is not only required to your client but to you as well. Is it necessary for insurance agents as well? Definitely! 

Small business insurance protects your business from claims & lawsuits and helps you to plan for the unexpected. According to Insureon, small business insurance cost less than expected. Policies can keep you in business by covering the costs of a lawsuit, including defense and business interruption costs, as well as any agreement costs.     

The right insurance for business can even protect your business from the costs associated with the risks! By taking the vital step to protecting your business, you will have the courage to choose the right risks to help companies to grow.

These are a few business insurances for agents. What business insurance have you applied for your business? Let us know in the comments below. 

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

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