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Back to the home page and map, from TryOwning · Insurance agency · Lesson 2
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Insurance agency · 14 min

Licensed and appointed

Before you sell one policy, the state has to license you, each insurer has to appoint you, and your agency needs insurance of its own. Here's the paperwork, with Texas as the example.

Ticket 01 · The guess

Insurance for the insurance agency

Agents make mistakes too: a missed coverage, a form filled in wrong. Before Texas will license an agency, it must show an errors and omissions (E&O) policy that pays for them. How much coverage does that policy need, at least?

$50,000
$0$1M
Words to know

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Tell us what looks off. No name or email needed.

What kind of problem?

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Sources and every number (1)

Sources

  • Proof of financial responsibility (Texas resident agencies) · Texas Department of Insurance, 2024

Every number

  • $250,000texas.gov ·2024 · The E&O policy a Texas resident agency must show to be licensed: at least this much coverage.
  • 10%texas.gov ·2024 · The largest deductible Texas allows on that E&O policy, as a share of the policy's full amount.
  • $25,000texas.gov ·2024 · The bond a Texas resident agency can file instead of the E&O policy.
  1. Lessons›
  2. Industries›
  3. Insurance agency
  • ·Before this: How an insurance agency makes money
  • ·Next: Quotes and renewals
  • ·Free guide: How insurance agents make money
Skip to the lesson
Back to the home page and map, from TryOwning · Insurance agency · Lesson 2
Part 1 of 3Part 1 of 3, 0 done

Insurance agency · 14 min

Licensed and appointed

Before you sell one policy, the state has to license you, each insurer has to appoint you, and your agency needs insurance of its own. Here's the paperwork, with Texas as the example.

Ticket 01 · The guess

Insurance for the insurance agency

Agents make mistakes too: a missed coverage, a form filled in wrong. Before Texas will license an agency, it must show an errors and omissions (E&O) policy that pays for them. How much coverage does that policy need, at least?

$50,000
$0$1M
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (1)

Sources

  • Proof of financial responsibility (Texas resident agencies) · Texas Department of Insurance, 2024

Every number

  • $250,000texas.gov ·2024 · The E&O policy a Texas resident agency must show to be licensed: at least this much coverage.
  • 10%texas.gov ·2024 · The largest deductible Texas allows on that E&O policy, as a share of the policy's full amount.
  • $25,000texas.gov ·2024 · The bond a Texas resident agency can file instead of the E&O policy.
  1. Lessons›
  2. Industries›
  3. Insurance agency
  • ·Before this: How an insurance agency makes money
  • ·Next: Quotes and renewals
  • ·Free guide: How insurance agents make money