Risky Business
A Small Business Insurance Guide for Independent Insurance Agents and Brokers


Chapter 2: How Insurance Protects Your Independent Insurance Agency or Stock Brokerage

Why Independent Contractors Need Small Business Insurance

While some brokers and insurance agents may be full-blown employees of specific companies, many are considered 1099 independent contractors. And this is mostly a good thing — not being tied to any single company can help you better serve your clients. Even if you're an insurance agent representing one large insurance company, you may still be the only one running the show in your office.

While this flexibility benefits you and your clients, it's not without its drawbacks. Most independent contractors are generally excluded from the coverage of the business entities they work with or represent. That means you'll need to have your own business insurance on hand in case you're sued individually.

Even if you represent one particular company, you'll need to carry your own insurance policies so long as you're an independent contractor.

You may also be required by law to carry certain kinds, and amounts, of insurance coverage, depending on…

  • The types of services you offer.
  • Your total billings.
  • Where you work.

As an independent contractor, you'll first want to look into two basic protections that every business owner should carry: General Liability Insurance and Property Insurance. In the next sections, we'll look at these two coverages in more detail.

Next: Part 1: General Liability Insurance: Basic Liability Protection for Independent Brokers

Grab-n-Go Information

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