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As an agent, you are always writing policies for others. You are wheeling and dealing with annuities, Medicare supplements, and ACA policies. We know you are a superstar, but have you ever wondered what type of insurance you would need for yourself? I am not talking about the standard life and health policies. So, what kind of insurance could a broker need?
Errors And Omissions
What is Errors and Omissions Insurance? Errors and Omissions (E&O) is an insurance policy that protects you as a broker from potential lawsuits, contract breaches, and much more. It is vital to protect yourself, as you are protecting your clients. The insurance industry is a lucrative business, and it is a business that can easily lead to errors. One error could result in you potentially being liable for any wrongdoing, no matter how accidental it might be. Clients can hold you accountable for almost anything. For example, if you cause your client to miss out on their coverage and that lapse in coverage leads to financial losses, you could find yourself in court. The purpose of E&O insurance is to cover your business and livelihood. As an agent, it should come as no surprise that a lack of coverage is a surefire way to find yourself in a heap of trouble. Whatever sales tactics you use for clients should be implemented for yourself.
E&O Insurance options:
- SuranceBay offers E&O for as little as $26.17/mo.
- Simply Business has an easy-to-use quote system to get a personalized rate.
- NEXT Insurance offers a cutesy way of getting a quote through funny imagery.
General Liability
Unlike doctors, insurance brokers still make house calls. The frequency may vary, but the risks are still very much a concern. If you accidentally harm a client or cause property damage to a client’s home, you could be liable for copious amounts of money! Unless you can fund these potential risks out of pocket, I would 100% suggest getting a general liability plan today. General liability coverage is not only used to protect your business but also to protect you and your clients. It is irresponsible to expose you or your clients to that much risk.
Things To Consider With General Liability:
- General Liability is not a federal requirement, but some states do require a form of this insurance.
- General Liability can cover bodily harm and property damage caused by you or someone representing your company.
- Large organizations may require you to hold General Liability to sell their products.
Workers’ Compensation
This insurance is for people developing their own insurance business and, for the most part, applies if you have employees. When one of your associates either injures themselves or becomes injured on the premises, workers’ compensation will cover your business. Remember, business owners must provide a safe and healthy work environment. If you fail to do so, you could be responsible for potential medical bills or lawsuits. Those costs are very expensive, so it is best to cover yourself and take out a policy that protects your workers and your bottom line.
Workers’ Compensation Pros And Cons:
- If you are the only agent in your private business, then workers’ compensation is not required.
- You might view workers’ compensation as unnecessary, especially if it goes unutilized. Yet, it remains crucial to everyday business.
Any way you slice it, insurance brokers need to cover themselves just as much as any one of their clients. You have to ensure your business is covered, or else you will no longer be able to support yourself or your clients. Are you concerned about business longevity? Then, protecting your assets is a top priority. Health Insurance Marketplace News For Agents & Brokers is a good resource for those building a business.
Agents
We hope that this information on insurance for insurance brokers was useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
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Vohny Figueroa joined Empower Brokerage in 2023 and came on as the department Videographer. With a strong eye for composition, and a keen eye for detail, Vohny helps the Marketing team create great content.
