Small Business Insurance for Insurance Agents, Claims Adjusters, Actuaries, and Stock Brokers
It's probably no surprise to you that your specific insurance needs depend on your business, which is why it's best to work with an agent to choose an insurance plan that actually helps reduce your risks. But it's also a good idea to get an idea of how various types of business insurance work.
Typically, small agencies and brokerages can benefit from the following types of business insurance:
Often called "slip-and-fall insurance," this foundational policy protects you when a third party (someone other than a client or the insurance provider) sues your business over personal injury or property damage. General Liability is a good idea for any business that has an office open to the public — once people can come through the door, they can get injured (and sue you for those injuries). Plus, many landlords require commercial tenants to have a GL policy in place to sign a lease.
As its name suggests, Commercial Property Insurance protects your business-owned property from damage by theft and certain types of weather events. A Property policy can cover physical space (whether you rent or own) as well as the equipment, furniture, and gear you use to run your business.
Designed specifically for small businesses that have a low risk profile, the BOP bundles General Liability and Property Insurance for a discount. Be sure to ask your agent whether your qualify for a BOP, because it's often a convenient and cost-effective way to secure foundational protections for your business, and many agencies and brokerages have a low enough risk profile to qualify for the BOP's protections.
This coverage protects you from lawsuits brought by third parties alleging that work you did in your capacity as an agent or broker caused them a financial loss. General Liability protects you from lawsuits over things that happened on your business property but had nothing to do with your work as a broker or agent, but Professional Liability protects you from lawsuits over alleged mistakes or oversights you made in your professional duties.
These days, you can hardly turn on the news without hearing about another major data breach. Unfortunately, the kinds of breaches that happen most often aren't the ones that get reported in the media. That's because most data breaches happen to small businesses, which tend to have less-secure systems (and less money to invest in data security). Cyber Liability Insurance helps pay for the costs associated with recovering from a data breach.
If you have a vehicle licensed in your business's name, you'll need a Commercial Auto policy to protect it. But even if you drive your personal vehicle for business purposes some of the time, you may need some kind of Commercial Auto coverage (such as a Hired and Non-Owned Auto policy) to make sure you're protected on the road. That's because most personal auto insurance policies don't cover incidents that happen during work-related driving.
This policy is an excellent and relatively inexpensive way to give your business coverage beyond the limits of certain existing liability policies. An Umbrella policy offers additional funds to pay for covered expenses when the limits on underlying policies are reached. So for example, if a client's slip-and-fall claim results in medical bills that exceed the limits of your GL policy, you can make a claim on your Umbrella policy rather than dipping into your personal assets.
In 49 states and the District of Columbia, all business owners who have employees are required to carry Workers' Compensation Insurance. If you're a sole proprietor, you don't need to worry about this coverage, but if you have employees, you could face fines or penalties for not carrying Workers' Comp.