Before you start selling your clients on the value of insurance, you need to make sure your own insurance portfolio is in order. As an independent agent, just like any business, you need to protect your business and your clients with the right insurance. There are two insurance requirements for independent insurance agents that you need before you open your agency: E&O and cyber insurance.
Insurance requirements for independent insurance agents
How can you sell your clients on the value of insurance if you don't have insurance for your agency? Getting insurance for your agency is the equivalent of putting your own lifevest on first before you help your fellow passengers, but, we don't have to sell you on the importance of insurance.
Before you can open your doors and get carrier access, you need to acquire errors and omissions insurance (E&O). Carriers will not offer appointments without proof of E&O insurance. You've invested a lot, time and money, to realize your dream of opening an independent insurance agency. Make sure you are adequately covered; just as you do for your clients.
Cyber insurance is another insurance requirement for independent insurance agents. The insurance industry has access to an incredible amount of sensitive, financial, and proprietary data (PII) making our industry very attractive for cybercrime. Most experts agree that it's not a matter of "if", but "when." Having comprehensive cyber insurance is non-negotiable. Having cyber insurance will also help you gain trust from clients.
E&O and cyber insurance are essential policies before you open your agency. As you grow and start to hire, you will need employment practices liability insurance (EPLI) to cover liability and your employees, but, this is not essential in the beginning stage when it is just you running the agency.
Setting your independent insurance agency up for success
When you join AAI, we give you a roadmap to success, including advising you on the essential insurance policies you need to build a successful independent insurance agency. Reach out to learn more about the benefits of joining our network.