Why Life Insurance Agents Require Professional Liability Insurance

//Why Life Insurance Agents Require Professional Liability Insurance

What Is Professional Liability Insurance? 

Professional Liability Insurance (also referred to as Errors & Omissions Insurance) is an important policy that may cover costs that you incur in the case where you make a mistake while delivering a service, failing to deliver on what you promised to do or failing to deliver at all.

It is a requirement by law to have professional liability insurance for life insurance agents. For example, if you’re an active life agent in the province of Ontario, FSCO (Financial Services Commissions of Ontario) requires that you have errors & omissions liability insurance in an amount of at least $1 million. To better understand what your licensing requirements are, you should get in touch with with the provincial regulatory licensing office.

In essence, this type of insurance protection responds to any claims that arise from acts of professional negligence.

What Is a Life Insurance Agent? What Type of Policies Do They Offer?

Licensed Life Insurance Agents will offer the following types of life insurance policies to their clients:

  • Life Insurance
  • Accidental and Sickness Insurance
  • Segregated Funds and Annuities
  • Ethics and Professional Practice

What Is Covered Under Professional Liability Insurance for Life Insurance Agents?

Most professional liability insurance policies cover economic (financial losses) which are suffered by third-parties.The most common exclusions in coverage for a professional liability police are:

  • Bodily Injury (BI) and;
  • Property Damage (PD)

The above are covered by Commercial General Liability (CGL), which typically, most businesses have for foundational protection and coverage. It is the absolute minimal coverage anyone who runs a business should own.

As every business is unique, the appropriate policies may differ. It’s a good idea to reach out to an insurance provider directly to understand what your options are. Zensurance is available 24/7, so if you’d like to know what your professional liability insurance for life insurance agents, feel free to call us anytime at +1-888-654-6030.

What Is Not Covered Under Professional Liability Insurance for Life Insurance Agents?

There are several types of commercial business insurance policies that could be coupled with professional liability insurance for life insurance agents. The following are common commercial business insurance policies that a life agent should consider:

  • Cyber Insurance
    If your customer information is compromised and their personal information is used against them (e.g. fraud activity where their I.D. is used), your customer can sue you for the cost of the damages associated. The added protection is a smart move, especially since the number of cyber attacks continue to grow, costing businesses lucrative amounts of money.
  • Business Interruption Insurance 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. You have a company laptop that was stolen when someone broke into your vehicle).
  • Legal Expense Insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).

Looking for the right professional liability insurance for life insurance agents? Need a quick estimate? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

How Much Does Professional Liability Insurance Cost? 

The cost of professional liability insurance can range somewhere between $1000-$1800, per policy, depending on the nature of your business and the level of risk it has. We encourage you to visit us online to get your free quote online.

What Kind of Information Do I Need To Get A Quote for Professional Liability Insurance for Life Insurance Agents? 

Save yourself some time! Gather your personal documents before requesting a professional liability insurance quote

Save yourself some time! Gather your personal documents before requesting a professional liability insurance quote

 

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for professional liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

If you’re ready to get a free quote online, Zensurance is making it easy for business owners to get a quote in under 5 minutes!

 

Quick Wrap-up — The Importance of Professional Liability Insurance for Life Insurance Agents 

By now, you should have a much better understanding the importance of professional liability insurance for life insurance agents. Here’s a quick summary:

  • Professional Liability Insurance can also be referred to as Errors & Omissions Insurance. It is a critical insurance policy that may cover costs that you incur as a life insurance agent, if you were to make a mistake while delivering a service, fail to deliver on what you’ve promised to a client or fail to deliver at all.
  • By law, active life insurance agents are required to a professional liability insurance policy. The minimum amount of coverage may depend on province, so you’ll need to contact your provincial regulatory licensing office for more information.
  • Essentially, professional liability insurance policies covers economic (financial losses) which are suffered by third-parties. There are exclusions that may be covered by a different policy (e.g. commercial general liability which may protect you from third-party liabilities). Zensurance also offers this! You can get a free quote online for professional liability insurance and commercial general liability here.
  • There are several types of commercial business insurance that are commonly added to provide additional protection. Some of these include General Liability Insurance (CGL), Cyber Insurance, Business Interruption Insurance, Property Insurance and Legal Expense Insurance.We encourage you to call us toll free at +1-888-654-6030 to talk about commercial business insurance options available to you and your business.
  • The cost of professional liability insurance coverage for life insurance agents will vary, depending on the nature of your work and the level or risk associated, with a range in cost between $1000-$1800, per policy.
  • To save time and move quickly to ensure you get the right coverage sooner than later, it’s best to prepare a list of questions that you may have. Take some time to assess your business and list possible risks that you’ll face as an agent. In addition, you’ll want to gather pertinent information that you’ll be required to provide (whether you’re searching for a professional liability insurance quote online, over the phone or in person). We’ve put together a handy list of typically request information.
  • There are a wealth of resources available to you as a life insurance agent, that will help set you up for success. Aside from the required minimums that you must meet to remain an active life insurance agent, we have put together a comprehensive list of valuable information that will benefit you—so feel free to bookmark them!
  • Professional liability insurance coverage doesn’t have to be difficult to understand. At Zensurance, we’re trying to make commercial business insurance easy to understand for businesses through transparency and education.

If you’re a life insurance agent who is looking for professional liability insurance, you can get your FREE quote online

Zensurance offers a simple-to-use, no-jargon online tool that walks you through the entire process. You can walk away with an estimated insurance quote in under 5 minutes!


A List of Resources for Life Insurance Agents in Canada

To make life even easier for you, we have listed some very valuable resources and information that we know you’ll need and appreciate. These are some fantastic resources that you’ll want to keep on hand, to set you up for success, so feel free to bookmark them!

If there are any resources that you don’t see but believe should be listed, contact us at content@zensurance.com.

National Insurance Associations

Provincial Insurance Associations 

Regulatory 

Licensing Information 

Educational Resources

Insurance-related News & Updates

Other News & Updates 

Business & Software Solutions 

  • FindBob — a platform that helps advisors find opportunities to buy, sell, merge, partner, or find a succession partner with the intent of maximizing the value of their book of business.
  • Humi — provides an HR platform, payroll and benefits solutions for sole proprietors or small to medium-sized businesses.
  • Lowesrates.ca —Offers comparison of

Insights 

  • MSA Research — stats and information related to the life insurance industry.
  • InsuranceIntel — Access to life & health insurance product comparisons (updated annually).

Forms 

If you see any resources that you think other life insurance agents will benefit from, feel free to send them to content@zensurance.com. We appreciate it!

Are you a life insurance agent looking for professional liability insurance? Get your FREE quote online

Our simple-to-use, no-jargon online tool walks you through the entire process. You can walk away with an estimated insurance quote in under 5 minutes!

By |2018-07-09T16:30:13+00:00June 7th, 2018|Business|0 Comments