Insurance Journal has an article revisiting the question of independent contractor status for insurance agents (see here, and also here), an important consideration for agency management and for Insurance Agents/Brokers E&O. This is a timely review of a question for insurance agencies.
While an independent contractor approach can provide financial and flexibility advantages to both the employer and the employee (or worker), there are tax, legal and regulatory consequences to an incorrect classification. The IRS has a specific set of criteria to qualify for independent contractor status, but state statutes will also impact the question. As noted in the article, California has a different set of criteria based on a court decision in 2018.
Independent contractor status can impact Insurance Agents/Brokers E&O coverage. Insurance Agents/Brokers E&O is a necessary coverage, and eSpecialty Insurance, has the expertise and markets for any type of Insurance Agents/Brokers E&O risk. Hard to place accounts are our specialty, including startups, specialty operations, adverse claim experience, and unique operating characteristics.
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you.