Articles & eBooks
4 Ways to Protect Your Insurance Agency

As the owner of an insurance agency, you know that a successful business is a protected business. And when you offer your services to clients, you're helping them live their lives in a more secure way. You help them plan for the worst-case scenarios they may encounter. But the question is, are you following your own advice? Or does your risk management plan need a checkup?

No matter the safety precautions or training sessions you have in place to deter accidents, the truth is that unexpected disasters and injuries can happen anywhere at any time. Your firm could be hit by a tornado, costing your company hundreds of thousands of dollars in repair and replacements. A client or visitor could trip, fall, and sue your business for medical expenses. Because no one can control acts of nature or human behavior, savvy insurance agents and brokers know that business insurance provides a plan of action when worst comes to worst.

Keep reading to learn the key ingredients of a reliable risk management plan and how you can ensure your insurance business can survive financial disasters.

Risk Management Tips for Brokerage Businesses

As a brokerage professional specializing in insurance, you probably already realize the amount of trust your clients place in your business. They turn to you to make sure their investment is a sound one, and expect your advice to work in their favor. But if something goes awry and they lose money on their investment or experience unexpected gaps in their insurance coverage, they could pursue your business in court.

Unfortunately, such scenarios are terribly commonplace, and if your business isn't protected with adequate insurance, you could suffer millions in loss between defense costs and court-mandated settlements. To make sure your business is prepared to handle lawsuits and other liabilities, consult this quick guide for four risk management tips that could save your business.

Take inventory of your professional liability risks.

Take inventory of your professional liability risks.

Because you act as a liaison for your clients, they trust you to give them sound advice as to how to best use their investment. And offering guidance tends to be where most professional liability risks thrive. That's why it's important to make sure you have adequate Professional Liability Insurance (aka Errors & Omissions Insurance) to make sure your business is protected in the event a client sues. If a disgruntled client does pursue your business, alleging your brokerage firm was professionally negligent, provided incomplete or incorrect work, made mistakes or oversights, or failed to perform professional duties, your insurance policy kicks in to cover attorney's fees, court settlements, and more.

You want to be sure to thoroughly conduct your risk assessment and get an E & O policy in place before any claims could be filed due to the nature of most of these policies. Professional Liability plans are typically claims-made based, which means your policy has to be in force both at the time of the incident and when the claim is made. That's why most insurance professionals keep their policy in force throughout the life of the company.

Prepare for worst-case scenarios.

Prepare for worst-case scenarios.

Aside from professional liability lawsuits, your business could fall prey to other unforeseen events, accidents, and natural disasters that lead to serious financial loss. To ensure the success and survival of your business, no matter what twists and turns await, plan for the worst-case scenarios. This may entail keeping triplicate copies of contracts, data, and records, and composing a list of contacts you'll need to get in touch with should disaster strike. You'll also want to consider insuring your office equipment against damage or loss due to natural disasters or theft. That way, if an unexpected incident does occur, your Property Insurance policy can fund the replacement of the items you need to run your business.

Protect your employees.

Protect your employees.

An office setting may seem innocuous enough, but again, there's no telling when accidents may happen or how others will respond to them. So when it comes to protecting your employees, you only do yourself a favor by taking the necessary precautions to ensure they have a safe work environment. This may include regular training sessions on proper lifting techniques for cumbersome or heavy items and investing in ergonomic office furniture to reduce the risk of repetitive motion injuries (e.g., carpal tunnel). Such practices may also reduce the premium for your Workers' Compensation Insurance, which many states require you carry. With adequate coverage, your policy can provide coverage for your employees' medical expenses and foregone income due to their work-related injuries. It can also cover the costs of hiring an attorney, settlement expenses, and other costs if your employee sues your business for their ailments.

Know your policy.

Know your policy.

As insurance agents know too well, insurance policies come with their own underwriting, which states the risks the policy will account for, as well as those it won't. To make sure your business receives the protection you need, be sure to read the fine print. You don't want to be surprised when it comes time to file a claim, only to discover your policy doesn't offer that coverage. Our insureon agents are happy to help you navigate the world of business insurance, and can answer any questions you come across. When you understand how insurance works and which policies offer the financial security you're looking for, you can make better purchasing decisions. Plus, you'll have the peace of mind that when you need to file a claim, your policy will be ready to back you up.

Business Protection for Your Insurance Firm

Business Protection for Your Insurance Firm

Risk prevention is a multi-level endeavor. When you've exhausted your own means of preventing hazards and limiting risk exposures, it's time to address the unexpected situations and the circumstances you can't control.

That's where a solid business insurance plan comes into play, offering your brokerage business a safety net in times of uncertainty. To make sure your business can survive a financial loss due to lawsuits or damaged property, contact an insureon agent today. We can help you tailor your policies to account for the unique risks your business faces.

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