Insurance Agents & Brokers Malpractice Insurance

Insurance Agents & Brokers Malpractice Insurance Information

As an insurance agent or broker, your professional guidance is often sought in important and complex situations. This responsibility comes with significant risks and exposures. No matter how thorough and experienced you are, a single error or lapse could have serious financial consequences. Therefore, it’s essential to protect yourself with comprehensive insurance agents and broker’s malpractice insurance.

What Does Insurance Agents & Brokers Malpractice Insurance Cover?

As its name suggests, insurance agents & brokers malpractice insurance is designed to protect you and your firm from malpractice claims. This coverage can include:

• Built-In First Dollar Defense and Defense Outside Limit
• Supplementary Payment
• Catastrophe Extra Expense
• Subpoena Response
• Regulatory Proceeding
• Crisis Management
• Loss of Earnings
• Key Insurance Professional Assistance
• Pre-Claim Assistance
• Deductible Eliminated if Client Declined Recommended Coverage
• Deductible Reduced if Settled by Mediation
• Relaxed Consent to Settle
• Insolvency Exclusion Carve-Back for A.M. Best Rating “B+” or Better (or Demotech “A” Rating), Members of State Guaranty Fund, or State Residual Market
• Punitive Damages (where available)
• Automatic Coverage for qualifying new subsidiaries
• Duty to Defend

What Other Types of Insurance Do Insurance Agents & Brokers Need?

• Business Owners Policy
• Workers Compensation
• Cyber Liability
• Directors & Officers
• Employment Practices Liability

How Much Does Insurance Agents & Brokers Malpractice Insurance Cost?

Before providing insurance agents & brokers with accurate quotes for adequate coverage, insurance companies must thoroughly assess unique circumstances. In most cases, the following criteria may be considered:

• Location
• Size of the firm (e.g., number of agents being insured)
• Types of insurance sold
• Claims history
• Years of experience in the industry
• Annual revenue
• Training and certification levels of agents
• Risk management practices in place
• Types of clients served (e.g., individual, commercial, high-net-worth)
• Regulatory compliance history
• Specific services offered (e.g., life insurance, health insurance, property insurance)
• Volume of policies written
• Customer satisfaction and retention rates