Every industry has unique risks that make finding the appropriate coverage complicated. Even though you've written hundreds of policies for your clients, you might not have had the opportunity to write one for another insurance professional or a stock broker. And even though you are well acquainted with the ins and outs of your profession, it's easy to overlook some of the quirks that you experience every day.
Any business can face a lawsuit, including insurance professionals and stock brokers. Being able to recommend coverages that protect them from multiple angles will make you a trusted partner in their risk management strategy. We suggest insurance and stock brokers carry the following policies:
Errors and Omissions (E & O) / Professional Liability Insurance
As an agent, you know how common it is for a small business to be sued. An unsatisfied customer could sue if they believe your client was negligent when providing advice about insurance or stock options. For example, if a claims adjuster fails to process a Workers' Compensation claim within the mandatory time frame, he could easily face a lawsuit alleging negligence. E&O Insurance, also called Professional Liability
General Liability Insurance
Insurance professionals and stock brokers can also be sued for premises liability (i.e., someone getting hurt on their property) or damage they cause to a third party's property. In the office, the risk of these claims is fairly low; however, the potential cost of a lawsuit can be high, making General Liability Insurance a smart investment. GL covers lawyer fees and court costs. It can also pay to repair or replace a third party's damaged property.
This coverage protects your clients if their business property - e.g., office space, furniture, equipment - is damaged by a covered event. For example, if your client's laptop is ruined in a fire, Property Insurance cover replacement or repair costs.
Workers' Compensation Insurance
If your client has employees, most states will require them to carry Workers' Compensation Insurance . In fact, some may mandate Workers' Comp even if your client only has one part-time employee. Workers' Compensation covers medical expenses and replacement wages when employees suffer a work illness or injury. As office workers, insurance professionals and stock brokers mostly face repetitive stress injuries, such as carpal tunnel syndrome, but stress-related illness may be covered, too.
Umbrella Insurance / Excess Liability Insurance
Also called Umbrella Liability Insurance, this single policy allows your client to draw on additional coverage and apply it to multiple policies. For example, if you client's General Liability policy provides $1,000,000 worth of coverage, but they are found liable for $1,500,000 in expenses, Umbrella Insurance can cover the difference.