Protecting Your Agency Errors & Omissions Insurance & Cyber Liability (Data Breach) Insurance
Errors and Omissions Insurance: As an Independent Insurance Agency owner you are expected, by virtually all insurance companies, to have an Insurance Agents Errors and Omission insurance policy covering your exposure as a professional insurance agent for you, your agency entity and your employees. Coverage is readily available with pricing based upon your experience level and the amount of premium your agency has written.
Coverage is complex and does vary
substantially by the insurance company providing coverage.
Most insurance companies request a minimum limit of
$1,000,000 on the policy, but coverage limits should be increased as the amount of agency premium
Preferred Insurance Agent
written for customers increases.
Cyber Liability Insurance (Data Breach): As technology evolves and criminal activity with people’s personal information becomes a valuable and marketable item, many states are requiring all insurance agencies to carry Cyber Liability. Coverage requirement limits may vary by state, with some that do not require the coverage at this time, but often require a limit of no less than $1 million along with a $1 million aggregate and a deductible of no more than $2,500. The policy must include coverage for privacy liability, cyber extortion, business income, and digital asset restoration with a minimum $100,000 coverage for PCI DSS (Payment Card Industry Data Security Standards) assessment.
Steps to Opening an Independent Insurance Agency Successfully
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