Insurance for
insurance
agents

Professional liability insurance, sometimes called errors and omissions insurance (E&O insurance), is insurance coverage for claims against businesses that provide professional services – for insurance agents, like you.

What does professional liability insurance for insurance agents cover?

• Dissatisfied client: An insurance agent helps a client secure a homeowners policy for a beachfront vacation home. During the consultation, the agent assures the client that the policy includes windstorm protection. Confident in the coverage, the client declines to purchase a separate wind endorsement. Months later, a hurricane causes significant wind damage to the property. The claim is denied because the base policy excludes wind damage and no endorsement was added. The client files a claim against the agent, alleging they were misled about the scope of coverage. The agent’s professional liability policy responds to the claim.
• Administrative error: An insurance agent completes a commercial property application for a long-time client but accidentally enters the wrong building address on the submission form. The policy is issued with the incorrect location, and the agent fails to catch the error during the review process. Months later, a fire damages the client’s actual property. When the client files a claim, the insurer denies it because the insured location does not match the property that was damaged. The client sues the agent for the cost of repairs, alleging professional negligence. The agent’s professional liability policy could cover this claim.

Feel confident with each new and existing client that comes into your office by having the right coverage in place. Learn more about Hiscox’s professional liability insurance.

General liability insurance could protect your business from another person or business’s claims of property damage, claims of bodily injury and some associated medical costs, and claims of personal and advertising injury.

Having general liability coverage as part of your agency’s insurance plan is beneficial in several instances.

• Bodily injury: A client comes to an insurance agent’s office on a rainy day and slips on the floor in the waiting area, breaking her hip. She makes a claim for medical costs. A general liability policy may cover these costs, up to the limit of liability.
• Property damage: An insurance agent goes to a client’s office to take a policy application. While she is there, she knocks an expensive collectible off a shelf, and it breaks. The agent’s general liability policy may cover the cost to replace the item, up to the limit of liability.
• Personal injury: While at lunch, an insurance agent's receptionist talks to the owner of the deli about a client in a false and unflattering way. The client learns of this conversation and sues for slander. A general liability policy may cover the subsequent claim up to the limit of liability, and pay for an attorney if necessary.

The unexpected does happen, and it’s best to be prepared. Request an insurance agency quote today.

We are here to help guide you through the process of finding the right coverage for your business. Learn more about how much general liability insurance costs.

Insurance agents should also consider a business owner’s policy. BOP is a combination of general liability and business property insurance and is often used to provide balanced coverage for small businesses who also want to protect their own equipment.

Some examples of what could be covered under BOP for insurance agents include these situations.

• A pipe bursts at an insurance agent’s office and causes water damage to their computer and office furniture. A business owner’s policy protects their business equipment and furnishings, covering the cost to replace the damaged computer and furniture.
• A fire damages an insurance agent’s office, destroys all their equipment and makes the space unusable during repairs. A BOP that includes business interruption coverage could protect the agent from costs associated with loss of business.

These are only a few real-world examples of how a business owner’s policy can help protect insurance agents. Learn more about business owner’s policies or contact us with any questions.

Insurance agents use computers to transact much of their business, and store sensitive customer data. This can leave them vulnerable to data breaches, ransomware incidents, and even a lost or stolen laptop that contains personally identifiable information. Cyber security insurance from Hiscox can cover the costs associated with these types of incidents and also provides resources to prevent an attack from happening in the first place.

Learn more about cyber security insurance.