Starting an independent insurance agency is an exciting opportunity — but just like your clients, your business needs proper protection. Before you sell a single policy, it's essential to have the right insurance in place to safeguard your operations, your employees, and the sensitive data you manage. Three critical types of coverage every agency should have are errors and omissions (E&O) insurance, cyber liability coverage, and employment practices liability insurance (EPLI).
As an insurance professional, your clients rely on your expertise and recommendations. However, mistakes happen. If you provide incorrect advice or overlook important details, a client may sue your agency for damages. E&O insurance protects you from the financial fallout of these types of claims. It covers legal fees, settlements, and other costs associated with professional errors. Not only is it a smart move — it’s a requirement. Most insurance carriers won’t grant you appointments without it.
Handling sensitive client data is part of daily operations for insurance agencies. With cyber threats growing more sophisticated, the risk of a data breach is real—and potentially devastating. Cyber liability insurance helps protect your agency if confidential information is compromised. This coverage can pay for breach response, legal defense, fines, client notification, and even reputation management. It’s also a powerful way to build trust with your clients, showing that you take data security seriously.
As your agency grows and you begin hiring staff, you take on new responsibilities—and new risks. EPLI coverage protects your business from claims related to employment practices, including wrongful termination, discrimination, harassment, and other workplace issues. These claims can be costly to defend, even if they’re ultimately dismissed. EPLI helps cover legal costs and potential settlements, offering peace of mind as your team expands. Depending on your needs, you can purchase a standalone policy or include EPLI as part of a broader general liability package.
At AAI, we understand the challenges independent agencies face. That’s why we provide the tools, guidance, and protection you need to thrive. From helping you secure essential coverage to offering ongoing support, our team is committed to your success. Contact us today to learn how we can support your agency’s growth with the right insurance policies in place.