Businessowner's Insurance for Insurance Agents

[Chkndinner14]

Since my main focus has always been P & C insurance, I thought I would share some common issues I have seen.

1. To the new agents or underwear agents- Since you are in the business, you have some belief that insurance is a good thing. Yet, I have seen many a sole proprietor go with out business property/liability coverage.
2. "I don't need it, I work from home"- Most home policies have very small caps for business property coverage. They are not rated for, nor do they intend to cover at home businesses. What about advertising liability, do you advertise, could you be sued? While the coverage has some exclusions, it can be a very valuable coverage to have.
3. "I can't afford it" It shouldn't cost more than $250 for a BOP policy. That should buy a nice starting package for an underwear agent.
4. "I can't get any, because I'm a moral hazard" - Can't help you there.
5. Bodily Injury/Property Damage- Drop your laptop on someone's foot? Knock over someone's vase in there home or office? Damage someone's "Elvis at the Gates of Graceland Bradford Exchange Commemorative Plate?" Your homeowner's will not cover this.
6. "I'll hire someone to telemarket and pay them cash and they can do it from their home." Don't do it without Work Comp Coverage. Laws vary by state, but in the states I have been in, you are in an employer, employee relationship. Go thru a telemarketing service and ask for a certificate of insurance from them. If you want, you can request for you or your company to be listed as additional insured.

These points would also apply to realtors, independent salespeople, etc

 

[GreenSky]

Since my main focus has always been P & C insurance, I thought I would share some common issues I have seen.

1. To the new agents or underwear agents- Since you are in the business, you have some belief that insurance is a good thing. Yet, I have seen many a sole proprietor go with out business property/liability coverage.
2. "I don't need it, I work from home"- Most home policies have very small caps for business property coverage. They are not rated for, nor do they intend to cover at home businesses. What about advertising liability, do you advertise, could you be sued? While the coverage has some exclusions, it can be a very valuable coverage to have.
3. "I can't afford it" It shouldn't cost more than $250 for a BOP policy. That should buy a nice starting package for an underwear agent.
4. "I can't get any, because I'm a moral hazard" - Can't help you there.
5. Bodily Injury/Property Damage- Drop your laptop on someone's foot? Knock over someone's vase in there home or office? Damage someone's "Elvis at the Gates of Graceland Bradford Exchange Commemorative Plate?" Your homeowner's will not cover this.
6. "I'll hire someone to telemarket and pay them cash and they can do it from their home." Don't do it without Work Comp Coverage. Laws vary by state, but in the states I have been in, you are in an employer, employee relationship. Go thru a telemarketing service and ask for a certificate of insurance from them. If you want, you can request for you or your company to be listed as additional insured.

These points would also apply to realtors, independent salespeople, etc

It's been a while since I sold P&C but I seem to recall that you can add business personal property to a HO policy for a small amount of dough. However, the total value of my business property is maybe $2,000 - computer, printer, etc. Not worth insuring.

You are absolutly correct about liability - it only covers personal liability, not business. Can one not endorse this onto a HO policy?

Gee, this brings backs bad memories of selling P&C!

Rick

 

[arnguy]

Chkndinner14, how are you going to sell that to successful insurance agents when John P. won't even spring for DI?

 

[Chkndinner14]

Chkndinner14, how are you going to sell that to successful insurance agents when John P. won't even spring for DI?

Arn, it's just like all my other lines of insurance I have,

I advise, but no one buys, "nothings gonna happen to me" lol

 

[Chkndinner14]

You are absolutly correct about liability - it only covers personal liability, not business. Can one not endorse this onto a HO policy?

Rick

I know of no companies that would do that, but there are a lot out there.

And you are correct, the liability is the real exposure.

 

[djs]

You are absolutly correct about liability - it only covers personal liability, not business. Can one not endorse this onto a HO policy?

Yes, with some carriers and with some pretty significant restrictions. It isn't always less money than an equivalent bop, though a lot of carriers won't write bops on home based businesses either.

In either case, the agent makes virtually no money on the endorsement or the $500 bop policy. Not many agents pursue this market due to the underwriting issues and time involved.

Dan

 

[Mr. Bill]

Not P&C licensed here, but....purchased a General Liability policy from an agent last year. One of the reasons was that in order for me to have a seminar/workshop at a public library, I either had to purchase the city's policy (which was $110 for two 4 hour evenings) or have a policy where I could add the city when I needed to for an event. Same issue with a community college, except they didn't have the option of tagging onto their policy. It was about $500 or so for the year.

 

[JRoot]

3. "I can't afford it" It shouldn't cost more than $250 for a BOP policy. That should buy a nice starting package for an underwear agent.

Who writes BOP policies with a $250 minimum premium? I have a few health clients I've sold a BOP policy for $500(minimum prem) with One Beacon. Couldn't find anything cheaper though...

 

[djs]

Who writes BOP policies with a $250 minimum premium? I have a few health clients I've sold a BOP policy for $500(minimum prem) with One Beacon. Couldn't find anything cheaper though...

Better question is who would bother to sell a bop with a $250 premium? You would basically be paying the client for your time. I can find some where the rating is about $350 a year, but there is almost always this mysterious line on the quote.... balance to minimum $150, making it a $500 BOP.

Dan

 

[JRoot]

Better question is who would bother to sell a bop with a $250 premium? You would basically be paying the client for your time. I can find some where the rating is about $350 a year, but there is almost always this mysterious line on the quote.... balance to minimum $150, making it a $500 BOP.

Dan

If they're a current client, I'll write it. I don't want my client to go to another broker and let that broker sink their hooks into my client. I wouldnt prospect for it.