What kind of insurance do insurance companies need to buy for their own company?

June 5th, 2009 by MilesVickstrom

I want to start an insurance company, but I need to know what kind of insurance I need to purchase for my own company. I have done research and can't find this. (Please do not tell me how to start one, or anything else besides what insurance I need, if any.)

Do you want to start an insurance company or an insurance agency? There is a difference. I'm guessing you want to start an agency because if you had the millions of dollars needed to start an insurance company you'd have the knowledge already or at least the money to hire someone who knew.

For an agency you'll need E & O insurance. Also, depending on your situation you'll need a business general liability and property coverage. You'll need business auto or at least a business classification on your auto insurance if you have vehicles. If you hire someone you'll need workman's comp and possibly health insurance, disability, etc. for the employees.

What typically happens to the insurance industry during a period of economic recession?

3 Responses

Zarnev Says:
June 5th, 2009 at 7:25 pm
Do you want to start an insurance company or an insurance agency? There is a difference. I'm guessing you want to start an agency because if you had the millions of dollars needed to start an insurance company you'd have the knowledge already or at least the money to hire someone who knew.

For an agency you'll need E & O insurance. Also, depending on your situation you'll need a business general liability and property coverage. You'll need business auto or at least a business classification on your auto insurance if you have vehicles. If you hire someone you'll need workman's comp and possibly health insurance, disability, etc. for the employees.
References :
Independent Agent
mbrcatz17 Says:
June 5th, 2009 at 7:41 pm
Like Zarnev says, there's a difference between an agency and a company.

And I think it's pretty safe to say, if you don't know enough about insurance to be able to recommend coverages for YOURSELF, you surely aren't able to go into the business yet.

Types.

Property. Liability. Directors & Officers. Errors & Ommissions. Workers Comp. Commercial Auto. Commercial Umbrella.

If you're referring to REINSURANCE, that's done via treaty, not by "buying a policy".
References :
agent, 21+ years
abc123 Says:
June 5th, 2009 at 8:05 pm
In addition to what others have already said, it may also depend in part on your locality. If you're in the U.S., I recommend checking with your state to be sure you're meeting any state-specific requirements.
References :

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What kind of insurance do insurance companies need to buy for their own company?

3 Responses