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Professional Liability Insurance for Counselors

A Better Option for Agents

Commercial Insurance is gaining popularity among insurance agents. In 2019, Insurance Information Institute mentioned the Direct Premium Written of Property and Casualty Insurance has increased by 5.2%, a faster growth rate than economic growth of 4.1% in 2019. It highlights the opportunities on how to become an independent insurance agent that can tap into an evolving P&C industry. With that said, a big dilemma lingers around on a straightforward path. Should an independent agent choose personal insurance or commercial insurance ? The answer can be cleared through a comparison of commercial insurance and its advantages over personal insurance. Also, it includes professional liability insurance for counselors as well.

What is professional liability insurance for counselors?

Commercial Insurance protects the business and covers losses from property damage, an injured employee, crime, et cetera. It also covers the employer’s liability and public liability. With the help of an insurance agency management system, you can track the latest insurance trends in commercial line market, and further develop better strategies to conquer your clients. A professional liability insurance for counselors is also called malpractice insurance. It is important if you work in the industry.

professional liability insurance for counselors
commercial insurance

How has the commercial insurance market changed? 

In the property and casualty insurance industry, agents prefer personal insurance because it seemed profitable and has been the “volume game” for a long time. However, recent data from the Insurance Information Institute mentions the growth rate of commercial lines Net Premium Written (NPW) has soared by 12 percent in 2019. This shifting dynamics in the P&C market signifies insurance agent’s preference for the commercial insurance arena. It is because the personal insurance market is being saturated. Tapping on profitable niches in commercial insurance can be beneficial in the coming years. There are many insurance blog that suggests you to tap in to commercial insurance as it has tons of benefits and a huge profit margin.

Why to sell professional liability insurance for counselors

Some of the reasons why commercial insurance can be beneficial for independent insurance agents are as follows:

  • Huge commission payout: Commercial insurances are known to have high policy limits than personal insurance due to their high-valued nature. It directly affects the amount of commission an insurance agent earns. A high policy limit equals higher commission dollars, and a lower limit equals fewer commission dollars you earn. Starting a successful insurance agency does require a huge commission payout because it sustains the operations of the agency. Working on the Top 10 Commercial Property Insurance Companies can increase your commission payout.
  • Highly diversified and ever-evolving: New business trends and changing dynamics of the market determine if the business can evolve and capture the opportunities. New business trends develop new niches such as ridesharing insurance. And that can be a huge opportunity to grow in the insurance industry. Insurance agents can build probable niches in commercial lines, unlike personal lines where the diversity is stagnant. A proper agency management system can also help to track latest trends in the evolving insurance industry.
  • Thriving business environment: As the number of businesses grows every year, the demand for commercial insurance is directly related. As per the Small Business Profile issued by SBA in 2019, there was a growth of 1 million small businesses in the US in 2020 reports. Also, an advantage of federal law mandating every business to purchase commercial insurance floods the gate of insurance agents’ opportunities. The booming businesses definitely contributes to the growing demand of commercial insurance.

Focusing on a single line of business in the insurance industry slims your chances of survival. As the saying goes, “Don’t put all your eggs in one basket,” a smart, independent insurance agent should surely be able to diversify their profile and tap into new niches. Commercial insurance can be a great start.

With the help of an insurance software, agents can manage their clients, their choice of insurance. The data can also help in analyzing what will their next step or their behavior will be.

commercial insurance