Commercial insurance agencies provide insurance coverage for businesses. The policies they offer help businesses to protect their assets and cover liability for any errors or problems with their products or services or on their premises. As a commercial insurance broker and agent, you are the individual who finds the best policy and rate for a business owner’s needs.

While you don’t have to obtain a degree in order to become a commercial insurance agent, there are other ways to fluff up your resume, attain better jobs within the industry and further your career. The following resources will help you to obtain helpful commercial insurance agents and brokers education and training:

1. Achieve the proper licensing in order to legally sell policies in a commercial insurance agency.

2. Read articles and publications about commercial insurance rates and trends.

3. Provide the best options for your clients by attending conferences and learning more about the legal requirements and costs of commercial insurance.

Action Steps
The best contacts and resources to help you get it done

Gain a commercial insurance broker license

In order to sell commercial insurance, you must obtain a license from the state board where you reside. Regardless of whether you work as an independent agent or as the local broker for a national company, in order to offer insurance policies, you must pass an exam, obtain a license and, depending on the state regulations, periodically renew such licensing. Most companies also prefer to hire individuals as agents that have a degree in business or economics.

I recommend: The United States Department of Labor – Bureau of Labor Statistics further explains the training and qualifications needed to become an insurance sales agent. Select your state on the Learninsurance map to determine what licensing requirements that state maintains.

Access articles and blog posts to offer more as commercial insurance agents

Many organizations associated with the insurance industry offer articles or blogs that discuss the current trends and developments within the commercial insurance industry. Some authors write these publications from the perspective of the consumer, but that will help you to better understand the desires and needs of your customers.

I recommend: Periodically visit the blog offered by the Commercial Insurance Group, an organization that helps individuals find the right insurance for their business. Subscribing to Business Insurance gives you access to articles regarding the latest news in the commercial insurance industry, as well as webinars and information on conferences.

Attend conferences that discuss options for commercial insurance brokers

Conferences and seminars in the commercial insurance industry will help you to see what resources are available to assist you in providing the best insurance policies and rates to your customers. They will discuss new policy options, rate comparisons and how to determine what options best fit your clients' specific needs.

I recommend: TrainUp offers a commercial insurance training seminar to help you familiarize yourself with the available policy options for a business. Attend the annual National Association of Commercial Insurance Companies' (NAMIC) Commercial Lines Underwriting Seminar.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  In addition to obtaining state licensing to become a commercial insurance agent, the insurance company you work for may require other exams and certifications before it will allow you to represent the company.

Commercial insurance agents and brokers help you find policies and rates for commercial insurance coverage. The coverage fully protects your business and financial future regarding any crisis you may face. It is very important that you trust your commercial insurance agent and fully understand what your policy covers before signing off on anything. Too little coverage won’t cover your out-of-pocket expenses. Too much coverage doesn’t benefit you—the insurance company only pays you for your loss.

The methods used by commercial insurance agents and brokers vary. You should understand the differences between commercial insurance agents and brokers before you start your search for coverage.

1. A captive insurance agent works for only one company and offers only that company’s policies.

2. An independent insurance agent works for several different commercial insurance agencies and can offer you several different plans and comparisons on commercial insurance rates.

3. A commercial insurance broker can offer you policies from any company and provide more individualized research and analysis.

Action Steps
The best contacts and resources to help you get it done

Use a commercial insurance agent recommended by a commercial insurance provider you trust

Select the company you'd like to work with, and they will provide a specific commercial insurance agent to act as the liaison between you and the company.

I recommend: Large commercial insurance providers like Travelers and State Farm have captive commercial insurance agents working on their behalf all over the country.

Weigh your options between companies with an independent commercial insurance agent

Look for excellent customer service records, flexibility and experience in working with businesses like yours. An independent commercial insurance agent can work with most any commercial insurance provider on your behalf.

I recommend: Find an independent commercial insurance agent in your area at Trusted Choice. VentureStreet is a professional web network that pairs consumers with commercial insurance agents in their region based on specific requirements. The National Association of Insurance Commissioners contains links to every state insurance department and allows you to research individual commercial insurance agents by name.

Cover a wide range of services with a commercial insurance broker

Commercial insurance brokerage rates can be higher than those of a commercial insurance agent. The additional cost provides you with a more in-depth analysis of commercial insurance policies. Commercial insurance brokers offer business analysis, determination of needs and can negotiate with commercial insurance providers on your behalf.

I recommend: Select an independent commercial insurance broker from reputable commercial insurance agencies like North Bay Insurance Brokers, Inc. in California or Ambush Associates, Inc. in Washington D.C.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A good commercial insurance agent or broker will make recommendations to you on ways you can reduce commercial insurance costs and still fully protect your business. For instance, a broker may suggest a higher deductible to lower to cost of commercial insurance rates.

When you work as a commercial insurance agent or broker, it's important to understand commercial insurance agents and brokers key terms. This not only helps you communicate with clients, but it also helps you in contractual setup. When you know the definitions and understand the nuances of the industry lingo, you can also use the language effectively to offer tight contracts that benefit the client. It also shows that you keep current with industry trends and terminology.

Action Steps
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Advance premium

At times, there is no way to set a price for a policy premium until you reach the end of the term. The advance premium, or deposit premium, is the amount a client pays toward the final premium cost. In essence, the advance premium works like a down payment.

I recommend: The State of New York Insurance Department has a website dedicated to information on advance premium questions. It offers answers, provides a general analysis and offers a conclusion for advance premium transactions.

Surety bond

Brokers use this term when referring to the assumption of the responsibility of a person or group to fulfill the financial obligations of another person.

I recommend: Worldwide Insurance Specialist offers information on surety bonds, including underwriting and how to apply for one.

Commercial Package Policy

A Commercial Package Policy (CPP) is a policy that has two or more insurance lines or coverage parts. It must have two or more parts in liability coverage, commercial general liability, boiler and machinery, auto (commercial or farm), property, crime or inland marine.

I recommend: InsuranceNoodle offers a detailed summary on commercial package policies. It explains coverage in depth and includes information on what this type of policy covers. It also discusses factors that affect cost.

Indemnity

This is one of the pillars of insurance coverage, the compensation for any sustained injury or loss.

I recommend: Go to FreeAdvice.com, a site dedicated to offering advice on matters of the law, to find out more information on indemnity and other insurance issues.

Misrepresentation

A misrepresentation occurs when a company or client misstates information, resulting in an error. The error may involve facts on the policy or pertain to information about the person getting insurance.

I recommend: The Boston ERISA Law Blog offers expert insight into the matter of misrepresentation in insurance coverage. It offers insight into the way this term affects clients, as well as agents and brokers, and links to areas where you can find out more on the topic.

Proximate cause

A proximate cause is an event that leads to a series of events in an unbroken sequence yielding a direct loss physically for subjects covered under an insurance policy. An example of this would be wind in a windstorm that causes damage. For example, when wind blows out a window and causes glass to knock over a lit candle, which burns down a building, the wind is the proximate cause.

I recommend: The Insurance Dispute Lawyer Blog defines the term proximate cause and offers examples. Another site that offers detailed examples of proximate cause is O'Mahony Boylan Golden (Munster).

As you start your business or expand operations, you should be in contact with commercial insurance agencies early in the process to make sure you're getting the best coverage and keeping commercial insurance costs as low as possible. Before you even start getting quotes, however, you should learn some insurance jargon and know what questions to ask an agent.

You should also be thinking of ways you can set up your business that will decrease your commercial insurance rates. As you talk to a broker, you might find that a good security system can lower your commercial insurance rate, as can safety classes for your staff. Commercial insurance agents and brokers for beginners includes:

1. Basic knowledge you'll need to find the right broker, and read your insurance agreement.

2. Information from commercial insurance agents and brokers trade groups, meant to simplify the process for consumers.

3. Rate comparisons from respected insurance vendors, to give you a rough idea of how much it will cost to insure your business.

Action Steps
The best contacts and resources to help you get it done

Find out what types of coverage are available, and how they affect the costs of commercial insurance

Commercial insurance coverage is for every type of business, from car manufacturers to clothing retailers. The needs of businesses vary widely, and a commercial insurance brokerage will have many different products to insure against different types of risks. Before you choose a policy, you should be fully aware of its components, and know how to read your insurance contract.

I recommend: Investopedia has a beginner's guide to insurance scoring and reading an insurance contract. Financial Web has an overview of different types of insurance, and FindLaw has an article on the different types of commercial insurance.

Read information provided by trade groups for commercial insurance agencies

There are several trade groups that represent commercial insurance brokers. They provide the industry with facts, statistics and news about state and federal regulations that affect insurance coverage. In addition to making this information available to members, commercial insurance groups also publish guides for businesses that need coverage to help clients make smart decisions.

I recommend: The American Insurance Association publishes "Insurance 101," a guide for insurance consumers. The Council of Insurance Agents & Brokers has a series of free publications for "Compliance CYA... Cover Your Actions." More Than Business has a very short, simple guide to commercial insurance for start-ups.

Compare commercial insurance costs from brokers in your area

When you're working with a commercial insurer, it's essential that you sit down for a face to face meeting. You'll need to ask things like whether your insurance will go down as you gain experience and whether the company's coverage can expand with you. However, getting quotes from respected insurers in your area gives you a starting point.

I recommend: Commercial Insurance lets you compare quotes from AIG, the Hartford Group and Safeco. QuoteItNow.com has a cost schedule for its extender endorsements.