The insurance industry assumes risk from its customers, and insurance agents/brokers can be targets for claims from clients, insurers, and other parties if something goes wrong.
Our streamlined process provides you with multiple proposals from the top competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. Click below to start an application.
Why Do You Need Insurance?
Errors & Omissions (E&O) and Cyber are critical coverages for insurance agents/brokers. Whether you provide casualty/property, life/health, or other insurance products, or you provide other insurance-related services, you are familiar with the impact and cost of a serious error or cyber event. You work in the business and recommend coverage every day to your personal and commercial clients.
Insurance professionals need insurance to help cover the costs associated with liability claims and other exposures (think: cyber). Any significant claim, even without merit, can impact your time, assets, and reputation.
Comprehensive coverage can help with:
Ensuring that your organization has the correct coverage at a reasonable cost requires some experience and expertise in insurance distribution and services. We can help.
What Coverages Are Recommended?
As you know, Errors & Omissions (E&O) is the crucial coverage, typically required by insurers and other trading partners, and Cyber Insurance is sometimes required as well. Bonds and D&O, along with some standard coverages, may be expected or required as well.
In addition to Specialty Insurance, all organizations should include most or all Standard Insurance coverages to be protected.
What Types Of Organizations Need Coverage?
Insurance Agents/Brokers are the most numerous of the insurance professions, but other types of insurance businesses also need coverage. And Insurance Agent/Brokers have a range of business models, and variations may require different underwriting information.
Some of the variations in insurance that may require different information or coverage include:
An insurance agency owner discovers that the E&O Insurance policy he purchased online excluded claims resulting from most of his business.
A retail insurance agent specializing in marine coverage purchased Insurance Agents/Brokers E&O Insurance online. After renewing for two years, he went to market to explore alternatives. A review of his policy revealed that the policy excluded coverage for claims resulting from the placement of, or failure to place, marine insurance, meaning he had effectively no coverage for his business! The exclusion was not clearly evident - buried in the policy form provided by his insurer. In addition, he did not have Cyber Insurance.
The policy was re-placed with a different insurer that provided appropriate coverage at a slightly higher premium, along with a comprehensive cyber policy at low cost.
Are There Special Situations I Should Be Aware Of?
Startups & New Operations
All new organizations will require insurance at some point, but the tricky question is what coverages are needed when. Founders need to balance conserving cash with basic protections, and no founder wants to incur expenses needlessly. Insurance agents/brokers will be required to obtain E&O in order to trade with insurers and other partners, but other coverages are important as well.
As committed capital rises, and an organization is providing services, insurance becomes more important for the organization’s and its employees’ protection. In addition to Errors & Omissions (E&O), customers, vendors, investors, and lenders may require Directors & Officers (D&O), Cyber, and Bonds at various points in your organization’s development.
Our experts can help you develop a plan for obtaining coverage on a schedule that fits your plan.
Non-Core Products & Services
It is possible that certain products or services that are new or not a significant part of your business may be important in underwriting your insurance. Make sure that these are clearly and fully disclosed in your application information to ensure that they become part of your coverage. Risk management consulting, premium financing, and claims adjusting are examples of add-on services that may need adjusted coverage.
Unique Products & Services
Your business may take a different approach from other businesses in your industry and therefore need different or custom insurance coverage. As an insurance expert, you know that your application should clearly and fully disclose what your business does so underwriters may properly make proposals for insurance.
Buying or Selling a Business
There is a range of factors to consider when buying or selling a business such as an insurance agency.
A purchase or sale agreement will contain provisions regarding what happens to any outstanding liabilities, and the insurance should follow. The seller is often responsible for ensuring that any outstanding liabilities are covered, and for Errors & Omissions (E&O) this means tail coverage. Other coverages may also require a tail, such as Directors & Officers (D&O). And insurance is available to provide financial protection for the representations and warranties contained in a purchase/sale agreement, called Reps & Warranty (R&W).
Get in touch if you have questions or needs related to the purchase or sale of businesses.
Why Choose eSpecialty?
Our experience in specialty insurance markets ensures competitive coverage solutions for you
Effective placement of specialty insurance experience and access to specialized underwriters
We will find solutions for all your unusual, complex or challenging insurance exposures
Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with an insurance expert such as eSpecialty Insurance.