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24 Mar 2015
Business Insurance in Sacramento CA

First, we must make a distinction between a coverage "broker" and an insurance "agent." Inside the insurance business, an agent is in partnership with a number of insurance companies. A dedicated agent includes a contract with a single company, normally an insurance business that prefers exclusivity, and can only sell the insurance coverage products of that company. An independent agent may work having a large number of companies, including AIG, CHUBB, and also the Hartford, to name only a few.

An agent does not work for an insurance business but alternatively for a client in the market to obtain insurance. So if a new business owner wished to purchase commercial liability insurance, a broker would not be tied to only those insurance products sold by their partners as an agent will be, but could check with any commercial insurance provider. Brokers often work with non-standard, "excess and surplus" line insurance firms. These firms specialize in unusual coverage, often for emerging technologies, and customarily do not enter into agreements with agents. As an example, if XYZ company created a new kind of communication equipment the location where the potential liability risks were unknown, XYZ would definitely need to approach a broker in order to buy commercial liability insurance. Sacramento CA Business Insurance

The best way to get started being a broker in the insurance company is to get a job with an established broker. There are lots of classes you can undertake commercial liability insurance and a great deal of research that you can do on the existing excess and surplus carriers, but having theoretical knowledge isn't enough to help you a successful broker. An established broker can tell you about the people in the insurance business. In the end, it is a surprisingly small world as well as your future success depends upon the associations you are making. Additionally, an established broker can steer you beyond the many pitfalls inherent towards the industry, mistakes that could cost a client his business. It is advisable to make these mistakes with someone experienced as your trusted companion to catch them and instruct you regarding how to avoid them. And, more to the point, you don't want to make these mistakes if you are the one paying for the errors and omissions policy, because once you are on your own, the first thing you will need to do is get your own errors and omissions coverage. After all, even people in the insurance business need to have insurance. Any broker you're employed for will probably have you sign a limited term non-competition contract, but these usually only apply to businesses within the same state.

An agent, like an agent, is licensed by the state, with the assumption how the broker resides inside the same state they are doing business in. Each state features its own requirements, which generally incorporate a fee and a specified minimum degree of education. An insurance business license has to be renewed regularly, and recurring education courses are usually necessary as part of the renewal requirements.

You might apply for a non-resident license, but remember that other states may have different licensure qualifications. Licensing information can be found on most states' insurance department websites. Additionally, if you plan to work in a different state, you will find it useful to have an agreement by having an in-state brokerage firm for tax purposes. And when you move to a new state, you will need to get a certificate of license status from your previous state in which you were licensed so that you can prove that you were a brokerage in good standing.


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