What insurance do I need as an insurance agent?

As an insurance agent, much of your time is spent advising your clients what coverage they need. But what about your own insurance needs?

There are several policies you might want:

• Errors and omissions (mistakes and client complaints)
• General liability insurance (personal injury and property damage)
• Cyber liability insurance (cyber fraud, hacks and data breaches)
• Workers’ compensation insurance (employee illness or injury)

Top of your list (which is why it’s top of ours) is errors and omissions insurance.

Errors and omissions insurance

You offer a professional service to your clients, right? They come to you for advice and trust it’ll be the right advice. Thing is, you may be a professional, but you’re still a human being. And humans make mistakes.

You don’t want to think you might miss a renewal, or arrange the wrong policy, but it can – and does – happen. And if you or anyone working for your insurance agency, make an error which costs your client money, you could be sued for compensation.

What’s worse is you don’t even have to have made a mistake. A customer can still file a suit against you, even if it’s groundless.

Errors and omissions insurance for insurance agents can take care of the costs of a lawsuit for you. If a client claims you made a mistake and it cost them, it can cover your legal fees, court costs and compensation, too, if you’re found liable.

General liability insurance

If you visit your clients at their offices, or they come to you, you need general liability insurance. Then, if you accidentally injure someone or damage their property, your coverage can take care of medical bills and repairs or replacement costs. And if they sue, it can cover legal fees and compensation, too.

General liability insurance also covers advertising and personal injury claims. So if an employee makes some not-so-nice remark about a customer, and it gets back to them, your agency is protected. Your policy can hire you an attorney, pick up the legal fees and damages too, if you’re at fault.

If you take things like your laptop and cell with you to client meetings, business personal property is a good add-on to your general liability policy. It also protects your moveable equipment (desks, chairs, even your potted plants) in your home office.

Cyber liability insurance

If you use email, own a website, or store your clients’ data (their credit card details, for example) you should consider cyber insurance. It can’t stop an attack on your business, but it can give you the tools and support (technical and financial) to survive one.

Just remember, size isn’t important to cybercriminals. Small firms are soft targets. Their defenses are often not as tough as those of larger firms who have deeper pockets. And as recovery costs average around $120,000, it’s no surprise 60% of small businesses go under within six months of a an attack.*

Cyber liability insurance can take care of these costs, including regulatory fines and legal expenses. It’ll also replace lost income if the attack stops you trading. And to help protect you from cyber attacks in future, you’ll get:

• Cyber training for you and your staff
• Advice on cyber security
• Up-to-date intel on the latest cyber threats.

As well as a handy mobile app so you can report a cyber incident wherever you are, you also get 24/7 support from the moment you do.

For more information, read our blog posts on the latest cyber claims (you’ll be surprised) and the most common questions about cyber insurance.

Workers’ comp insurance

Most states require you to have workers’ compensation insurance the minute you take on your first employee. If you don’t have it, you’ll have to pay penalties.

But it’s coverage worth having, anyways. It protects your insurance agency from the cost of workplace injuries to your staff. And those can be crippling.

Without insurance, it’s not just the lost productivity that’ll cost you. You’ll have to find the cash to cover medical bills and missed wages. Then, if you’re sued, you’ll have legal expenses to pay, too.

If one of your employees falls ill as a result of working for you, or gets hurt while they’re on the job, workers’ comp insurance can pay for medical bills, lost wages and legal expenses.

It can also protect you from a lawsuit — no matter who’s at fault.

Carry out regular risk reviews

It’s a good idea to regularly review your insurance to make sure it meets your agency’s needs. Because risk-planning is never a one-time job. As your business evolves and grows, so must your risk plan.

For more on small business risk, download our handy guide.

Sell more with our insurance agent partner program

Now you’ve gotten your own coverage sorted you can get back to the business of selling insurance.

We’re guessing you’re always on the hunt for ways to sell more. And we’d love to help. Check out our wholesale insurance program.

Sign up now and you can quote & bind Hiscox GL, PL and BOP online, in minutes.  With 180+ professions covered and competitive rates, you’ll cover more and earn more too.

You don’t need a direct appointment with Hiscox – we pay your commission, for the life of the policy.

What’s more, there’s no post-bind effort — Hiscox does it for you.

Find out more here. Or call us at 978.344.4215 and we’ll talk you through it.