Working at two different brokerages

[rousemark]

For business done in a W-2 capacity, the agency one works for should be paying for the E&O for the entire agency.

For business done as an independent, you'd need to purchase separate E&O for that business.

Don't know how it is now but back when I was a captive debit agent we still had to carry our own E&O.

 

[DHK]

My main point (that I didn't make) was that you can't (shouldn't) use your employer's E&O coverage for your own independent selling contracts.

You'd need two policies so you can keep it all separate.

When I was at Mass, I also had to pay for my own E&O, but it covered everything and they let you sell other companies (other than indexed annuities and indexed life), so there wasn't an issue.

But if I was at my credit union wanting to do outside business (which would be a big no-no, particularly with securities licenses), I'd need to set up everything separately.

 

[marindependent]

You'd need two policies so you can keep it all separate.

Good Luck with that. You might have to elaborate on exactly how someone keeps say 2 Different life insurance sales processes completely separate [for E&O purposes]. This is not like being an accontant and running a laundromat. Where one is clearly accounting advice and one is clearly the failure to advise on stain removal.

@Al3x Lee how do you sepearate out your Back to the Future memorabilia business from your CA DOI advisory work?

 

[DHK]

I haven't done it, but I've imagined having to do it.

In short, you sell one set of companies with your W-2 compensation to the leads and E&O they provide.

You sell another set of companies with your 1099 compensation to your own self-generated leads and E&O you purchase yourself.

As far as being dually contracted with the same insurance carriers... I wouldn't do that. That's too convoluted and too easy to make a mistake.

I still don't think it's a good idea overall, but if I had to, that's what I'd do.

Of course, one should be making plans to leave the W-2 situation as quickly as possible because you could easily be accused of "selling away" from the leads and existing book of business to your outside contracts.

It's the same kind of conflict of interest that banks imagine insurance agents and financial advisors could do if they have outside selling contracts... and those sales wouldn't be 'supervised' by the bank or brokerage, etc.

 

[Markthebroker]

Good Luck with that. You might have to elaborate on exactly how someone keeps say 2 Different life insurance sales processes completely separate [for E&O purposes]. This is not like being an accontant and running a laundromat. Where one is clearly accounting advice and one is clearly the failure to advise on stain removal.

@Al3x Lee how do you sepearate out your Back to the Future memorabilia business from your CA DOI advisory work?

 

[Markthebroker]

Picking up a second job to fill in the shortcomings from the first job is like tying two drunks together and hoping they walk straight.

It may take some doing, but you should work to get what you need from one job, or perhaps need only what you're getting from your first job. Otherwise, oftentimes you're just doing two things poorly. Just my $0.02.

 

[Tahoe Ray]

Picking up a second job to fill in the shortcomings from the first job is like tying two drunks together and hoping they walk straight.

It may take some doing, but you should work to get what you need from one job, or perhaps need only what you're getting from your first job. Otherwise, oftentimes you're just doing two things poorly. Just my $0.02.

 

[Markthebroker]

Hehe. He said "ass".