Articles & eBooks
6 Things to Know before Buying Insurance for Your Insurance Agency

Insurance agents know that a successful business takes plenty of risk management and protection planning. And because you're used to dealing with high stakes — whether you're finding the appropriate life insurance or P&C coverage for a client — you turn to business insurance for a financial safety net. If something goes awry in your client dealings or a tornado wipes out your office front, you want policies that can step in to help you out.

But aside from knowing you want protection against liability lawsuits and property loss, the journey to finding adequate coverage can be a painstaking one. From wondering which limits makes sense for your business to trying to understand the kinds of coverages that meet your needs, the hunt for insurance can take time and arduous fact checking when you're on your own. So instead of reading page after page of insurance information, here are the quick facts you need to ground your search for business insurance.

Business Insurance Tips for Insurance Agents

Begin your foray into business insurance with assurance. Check out these six easy tips for finding the policies that keep your brokerage firm protected in times of crisis.

1. Take a close examination of your potential risks.

1. Take a close examination of your potential risks.

No one likes thinking about all the things that could possibly go wrong in their business, but when it comes to giving your business the financial protection it needs to survive a lawsuit or extensive property damage, this kind of planning is invaluable. So before you type anything into your Internet search bar, spend some time walking through your normal day. How many people visit your office? Do you live and operate in an area that is prone to extreme weather, such as tornadoes? What equipment does your firm depend on to serve your clients? All of these factors will help you determine the kinds of coverage and amount of protection that can save your business in times of turmoil.

Assessing your risk exposures will also help you prioritize the coverages you will want to secure. When you apply for a policy, your insurance provider will conduct a similar evaluation in a process known as "underwriting." They will determine which risks they will and won't accept, and because you've prioritized your needs, you can decide whether their offer is acceptable.

2. Look for an "A" rating.

2. Look for an "A" rating.

A-rated insurance providers are the leaders in the industry. They've staked an enduring reputation built from reliable coverage, competitive rates, specialty products, and quick payouts. So you know when you come across such a provider, you can trust that you will receive high-quality business coverage. But since you have your hands full — offering your clients your foremost attention while striving to grow your agency — know that you don't have to scout such providers out on your own. When you work with licensed insurance agents — like the expert agents at insureon — you benefit from our longstanding relationship we've developed with these providers. All you have to do is review the competitive quotes we send along and decide which one works best for you.

3. Know that coverage is more important than cost.

3. Know that coverage is more important than cost.

For a small brokerage firm, it's perfectly reasonable to be concerned about premium prices. After all, you may be working with a slim budget. However, it's necessary to look at business insurance as an investment in the health of your business. If you should be unexpectedly hit with a lawsuit, you may not have the luxury of time to get together the funds to hire a defense attorney or pay settlements. And when you have the appropriate insurance policies in place, you will never need to scramble to make sure you have those emergency funds — they will be there, at the ready.

As you shop around for a business insurance policy, you want to favor the coverage your business receives over the price of the policy. This isn't to say you can't find competitively priced policies with adequate limits, as you most certainly can. But if the only factor you're leaning on is price, you may be doing your business a grave disservice. When it comes time to file a claim, you may not have the coverage you thought you did, the payouts might be slow, or you could be surprised later on when the premiums skyrocket. When in doubt about your policy, talk to your insurance agent. If they don't address your questions, don't sign off on the policy.

4. Work with brokerage specialist agents.

4. Work with brokerage specialist agents.

Licensed insurance agents who specialize in serving insurance agents already know the risks of your business and can save you time of sifting through policies by finding the ones already tailored for your industry. For example, the brokerage specialist agents at insureon work with insurance agents every day, ensuring they have adequate Professional Liability coverage and saving them money by connecting them with a Business Owner's Policy. Typically, these are the policies your brokerage firm will want to consider:

  • General Liability Insurance.
  • Property Insurance / Business Owner's Policy (BOP).
  • Workers' Compensation Insurance.
  • Professional Liability Insurance.
  • Umbrella Liability / Excess Liability Insurance.
5. Read the fine print.

5. Read the fine print.

Underwriting is complex and accounts for the nitty-gritty details of your coverage. Each policy comes with its own limits, exclusions, deductibles, and premiums, so be sure you know the exact terms you're agreeing to. That way you can ensure the protection you think you're receiving is actually in your policy. If you have questions about the language of your policy or its exclusions, be sure to speak to your insurance agent.

6. Accept limits higher than you think you'll ever need.

6. Accept limits higher than you think you'll ever need.

Lawsuits are notorious for being expensive, and their reputation holds true. Even when your brokerage firm is entangled in a meritless case, the cost of hiring an attorney can be enough to financially constrain a small business. Then there's the dreary possibility that your business is liable for wrongdoing. Settlements can be beyond exorbitant, which is why savvy brokers know to protect themselves with policies that have considerable breathing room. If you want to increase the limits on your General Liability or Employer's Liability (part of your Workers' Compensation plan), you may be interested in purchasing Umbrella Liability Insurance. This is a streamlined way to extend your coverage on multiple policies by millions of dollars, all with one convenient premium.

Policies for Your Insurance Business

Policies for Your Insurance Business

The Brokerage Specialist agents at insureon are happy to connect you with the policies that protect your business against liability risks and property damage. To get started, simply complete our easy online application, and depending on your needs, we may be able to send you quotes in minutes!

Customer Rating 4.9 out of 5
Read Customer Reviews

Grab-n-Go Information

Agent Risks eBook
Risky Business: A Small Business Insurance Guide for Independent Stock Brokers and Insurance Agents
Browse eBook
Sample certificates
See a sample Certificate of Liability Insurance, the proof of coverage you need for most contracts.
View Sample
Sample Quotes & Cost Estimates
See what insurance really costs: actual quotes by policy & specialty.
Get Estimates
Ask A Question
Submit your questions about small business insurance and get answers from our experts.
Read Answers