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Insurance

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.

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  • Why Do You Need Insurance?
  • What Coverages Are Recommended?
  • What Types Of Organizations Need Coverage?
  • More FAQs
    • Are There Special Situations I Should Be Aware Of?
    • How Does It Work?
    • How To Get Insurance?
    • Why Choose eSpecialty?

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.

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Comprehensive coverage can help with:

  • Your Protection – Insurance can provide financial resources to respond to and recover from an unlikely but serious event, such as a client claim.
  • Customer and Vendor Requirements – Insurance carriers and other trading partners will require E&O Insurance, and are increasingly requiring Cyber Insurance.
  • Investor/Lender Requirements – If you have outside investors, they may require Directors & Officers (D&O), and may also require other coverages such as Employment Practices Liability (EPL).
  • Defense Costs – You have likely seen the impact of defending frivolous claims, which can be costly.
  • Risk Mitigation – For some types of insurance, such as Cyber Insurance, insurers provide pre- and post-loss expertise and other resources to reduce loss costs. For example, E&O insurers may provide access to expert counsel, and Cyber Insurers may provide security protection information and services.
  • Regulatory Requirements –Insurance and other regulators require insurance. Workers Compensation is one example, along with E&O and Bonds.

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.

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Errors & Omissions

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Cyber

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Directors & Officers

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Employment Practices Liability

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Bonds

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Standard Insurance Coverages

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:

  • Insurance Agents/Brokers
  • Third-Party Administrators
  • Risk Management Consultants
  • Benefits Consultants
  • Insurance Companies, Captives
  • Premium Finance
  • Insurance Aggregators/Networks
  • Property & Casualty Insurance Agents/Brokers
  • MGA/Program Administrators
  • Wholesale Brokers
  • Insurtechs
  • Life/Health Agents
  • Higher Risk Business Concentrations
  • Reinsurance Intermediaries

Have a question about your specific needs?

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Case Study

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.

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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.

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How Does It Work?

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    Get in Touch

    Get started today by providing us with some basic information, and we will put our expertise to work for you!

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    Competitive Quoting

    Our marketplace combines specialty insurance expertise and competitive underwriters. You can expect multiple proposals from top insurers.

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    Expertise Delivered

    We will help you evaluate your options, allowing you to balance coverage and cost.

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How Do I Get Insurance?

eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined process to provide multiple proposals from a range of competitive insurers, along with the expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price.

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Why Choose eSpecialty?

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Expertise

Our experience in specialty insurance markets ensures competitive coverage solutions for you

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Access

Effective placement of specialty insurance experience and access to specialized underwriters

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Reliability

We will find solutions for all your unusual, complex or challenging insurance exposures

Visit the eSpecialty Insurance blog for our latest thoughts on Specialty Insurance

Contact Us

Put our expertise to work as you balance comprehensive specialty insurance coverage and cost. Work with us!

Get in Touch

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.

Solutions for your unusual, complex or challenging insurance exposures.

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Coverages

  • Cyber
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  • Directors & Officers
  • Employment Practices Liability
  • Bonds
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  • Standard Insurance Coverages

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