Insurance Agents & Brokers Coverage Guide
Insurance agent E&O is the #1 exposure: failure to procure coverage, wrong limits, and missed renewal claims. Cyber matters too — agents hold dates of birth, SSNs, and financial information for every household they insure.
Critical Coverage
Professional Liability (E&O)
Covers claims of negligence or mistakes in professional services
What it covers
Failure-to-procure-coverage claims, wrong-limits claims, missed-renewal claims, misrepresentation. Mandatory in most states for licensed agents.
Common misconception
Agents think 'we just sold what the client asked for.' If a client suffers an uninsured loss and you didn't recommend appropriate limits, the duty-to-advise standard frequently puts the agent on the hook.
What it does NOT cover
Intentional acts. Sales of unauthorized/non-admitted carriers without disclosure. Personal lines vs. commercial (often segmented).
The gap — what happens without it
A small business client suffers a $1.2M cyber loss. They had no cyber coverage; your file shows no record of recommending it. Failure-to-advise suit settles for $400K. E&O pays.
What drives your premium
Annual revenue, lines of business written, P&C vs. life/health, claims, surplus lines volume
Endorsements to ask about
Prior acts. Surplus lines coverage. Life and health coverage if applicable. Independent contractor coverage for sub-producers.
Cyber Liability
Covers data breaches, ransomware, and digital threats
What it covers
Breach response for agency management system data — every client's DOB, SSN, EIN, prior claims, banking info. Wire-fraud exposure on premium remittance.
Common misconception
Agencies think 'the carrier holds the data.' Your AMS holds client data too — and a breach there can affect every client and producer.
What it does NOT cover
Unencrypted devices. Unpatched vulnerabilities.
The gap — what happens without it
AMS breach exposes 4,200 client records. Notification, credit monitoring, regulatory defense: $480K. Cyber pays.
What drives your premium
Records, MFA, employees, claims
Endorsements to ask about
Funds-transfer fraud. Social engineering. PCI fines.
Important Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Premises liability, advertising injury, third-party injury.
Common misconception
Agency offices have constant client traffic — premises liability is a real exposure.
What it does NOT cover
Professional services. Employment.
The gap — what happens without it
Client trips in your office — $14K. GL pays.
What drives your premium
Offices, employees, revenue
Endorsements to ask about
Hired/non-owned auto.
Employment Practices Liability (EPLI)
Covers wrongful termination, discrimination, and harassment claims
What it covers
Employment claims from staff and producers.
Common misconception
Producer compensation/non-compete disputes often resemble employment claims.
What it does NOT cover
Wage/hour. WARN.
The gap — what happens without it
Departing producer alleges discrimination during exit — defense $42K. EPLI pays.
What drives your premium
Employees, state, claims
Endorsements to ask about
Wage/hour. Third-party.
Situational Coverage
Directors & Officers (D&O)
Covers personal liability of company leadership
What it covers
Officer personal liability where investors or external boards exist.
Common misconception
Aggregator/cluster networks may impose D&O requirements on member agencies.
What it does NOT cover
Fraud.
The gap — what happens without it
Aggregator dispute names principals — D&O defends.
What drives your premium
Structure, claims
Endorsements to ask about
Entity coverage.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.