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Business Insurance for Insurance Agents and Brokers
What kind of work do you do?
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Why do insurance agents and brokers need business insurance?
Just as you tell your clients, it's worth getting insured to avoid paying more down the road. A disagreement over a claim or an exclusion could lead to an expensive lawsuit. Business insurance covers financial losses related to disputes, injuries, and other incidents that could devastate your business.
One application, multiple quotes
Insureon helps property and casualty (P&C) agents, life and health agents, and insurance brokers get insurance quotes from top U.S. carriers online.
Get several quotes with one easy application.
What types of insurance do insurance agents and brokers need?
These insurance policies cover common risks faced by agents and brokers.
Errors and omissions insurance
E&O insurance for insurance agents covers legal defense costs related to work performance, such as failure to procure the right coverage for a client. It’s also called professional liability.
BEST FOR
- Failure to explain coverage
- Administrative errors
- Accusations of negligence
General liability insurance
This policy covers basic risks, such as a client who sues after falling at a P&C agent’s office. Bundle it with property insurance for savings in a business owner’s policy.
BEST FOR
- Slip-and-fall accidents
- Damaged customer property
- Libel or slander lawsuits
Business owner’s policy
A business owner’s policy, or BOP, is a cost-effective way for insurance agents and brokers to buy commercial property insurance and general liability coverage together.
BEST FOR
- Customer bodily injuries
- Accidental damage to a client's property
- Business property damage and theft
Workers’ compensation insurance
Most states require workers' comp for insurance agencies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal fees
Commercial auto insurance
Commercial auto insurance helps pay for expenses after an insurance agent's or broker's vehicle is involved in an accident. Each state has its own requirements for auto liability insurance.
BEST FOR
- Property damage caused by your vehicle
- Auto accident medical costs
- Vehicle theft and vandalism
Cyber insurance
This policy helps insurance agents and brokers recover financially from data breaches and cyberattacks. It's strongly recommended for any small business that handles sensitive information.
BEST FOR
- Customer notification costs
- Fraud monitoring services
- Regulatory fines
Looking for different coverage? See more policies.
How much does insurance cost for insurance agents and brokers?
A small business with a few agents or brokers will pay less for insurance than a larger agency.
Factors that affect premiums include:
- Insurance specialty, such as annuities, homeowners, health, or life insurance
- Business property and equipment
- Annual business revenue
- Types of insurance products purchased
- Coverage limits and deductibles
How do I get insurance agent or broker business insurance?
It's easy to get insurance agent or broker business insurance if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Insureon's licensed agents work with top-rated U.S. insurance carriers to find the right coverage options, like errors and omissions insurance for insurance agents or brokers, whether you work independently or hire employees.
Verified business insurance reviews
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Common questions about insurance agent business insurance
Find answers to frequently asked questions about insurance agent and broker business insurance and more.
Why is errors and omissions insurance for insurance agents and brokers crucial?
Depending on where your agency or brokerage operates, you may be required by your state, county, and city to carry errors and omissions (E&O) insurance. This coverage is sometimes called professional liability insurance or malpractice insurance and helps safeguard your business, work, and reputation.
Even if your state doesn't require coverage, a client or government entity might ask for proof of insurance. Additionally, you may need to show a certificate of coverage to obtain and renew a business license. It should also just be good practice for insurance agents and brokers to carry E&O coverage whether or not they're mandated to have it.
Because of the professional services your company provides, a client's finances can be impacted by your work and knowledge, which puts you at high risk of E&O claims, such as:
- A client could sue an independent insurance agent for telling them they were covered for something that turned out to be an exclusion.
- A delay or error in paperwork from an agency could lead to a client not having coverage when they need it.
- You might do nothing wrong, but a client could still sue you to try and recoup their financial losses.
If you're sued, an E&O policy can help pay for attorney's fees, court costs, court-ordered judgments, or even a settlement, up to the limits of liability on your policy.
Learn how to get low cost E&O insurance for insurance agents and still get the protection needed.
Do insurance agents and brokers need to obtain a business license to sell insurance?
While every state has varying licensing requirements for insurance agents and brokers, so does each municipality and local government – you should be sure to check your city, county, and state for their unique requirements.
To obtain licensure and become an agent or broker, you'll likely need to:
- Take courses on insurance
- Pass an exam
- Submit to a background check and fingerprinting
- Pay a fee
Additionally, the type of license you'll need to acquire—and its specific requirements—will depend on whether you're an insurance agent or insurance broker.
Without a license, you're still able to perform some administrative tasks in an insurance agency or brokerage, such as returning calls, scheduling meetings, and assisting with paperwork.
It's important to know that selling insurance without a license comes with severe consequences and penalties, including jail time.
What's the difference between a freelance insurance agent and a captive insurance agent?
A freelance insurance agent works independently of an agency and is about to source and provide insurance from multiple insurance providers.
While a captive insurance agent is contracted to a single insurance company and can only sell that company's policies.
The largest difference between a freelance agent and a captive or exclusive agent is their compensation and support. Because of their independent nature, freelance insurance agents have to handle their own insurance, referrals, and overhead costs. However, they take home a higher commission overall.
A captive insurance agent, while they take home less money, has more business support and stability through their agency.
What other types of insurance coverages do insurance agents and brokers need?
To comprehensively protect your insurance agency or brokerage from costly, devastating risks, you may need additional types of coverage. For example, you should also consider the following policies:
- Electronic data processing (EDP) insurance helps protect against financial losses if a fire, natural disaster, or other covered peril damages or destroys your computers, backup drives, and other business data and devices.
- Hired and non-owned auto (HNOA) insurance is a key policy if you or you employees drive personal vehicles for work. This coverage helps safeguard your business against legal costs in the event of an accident. It also covers leased and rented vehicles.
- Fidelity bonds are a sign of dependability, and some clients may require you to carry a bond before working with you. They provide protection for your clients by reimbursing them in the event of employee theft.
Finding affordable insurance for agents and brokers doesn't have to be complicated or leave you lacking coverage. With Insureon's easy online application that sources quotes from leading insurance companies, you're able to compare quotes quickly.
Some additional tips to save on your insurance premiums is by bundling policies, choosing cost-saving options on your coverage, and a well-versed risk management plan to avoid insurance claims, as well as pay less for insurance.