Put in simple words, a commercial insurance agent acts as a bridge between the company that provides insurance and its clients. The agent’s main task is to advertise and sell the insurance plans to a client. Since the jargon of the insurance world can be confusing to the common man, the agent must explain everything to the clients on behalf of their company. The whole portfolio of the clients is handled by these agents. Here we will see about Salaries For Commercial Insurance Agent.
The salary of a commercial insurance agent ranges from $26330 to $122000 per year. The highest salary of $122000 is obtained by the highest-earning 83% of the agents. The median salary of commercial insurance agents is around $50000 per year. The insurance agents can be categorized into the type of insurance they sell. Commercial insurance agents mostly cover the damages caused to any businesses by theft, fires, faulty machinery, or similar causes.
The type of commercial insurance an agent sells and how their salary depends on it is mentioned below:
Liability insurance
Liability insurance mostly protects businesses or properties against damage from other people. The insurance policy covers every cost that the property or the business holder is responsible for. However, there are a few things that liability insurance does not cover. If the damage to business or property is intentional, insurance will not cover the damages. If the client is criminally prosecuted, insurance will not be covering the damages. Types of liability insurance include:
- Personal
- Compensation of workers
- Commercial
The lowest earning liability insurance agents earn around $25729 per year. The highest-earning liability insurance agents earn around $85000 per year.
Office liability insurance (Includes directors’ insurance as well)
Any damage done by the directors of an office while they are in charge is covered by this insurance. If they break the law or treat employees poorly etc, this type of insurance will cover the costs. Basically, anything the officer does which causes harm to the company will be covered by this insurance. The cost is normally between $1500 to $3000 per year. However, many smaller companies may pay even lesser than $1500 per year.
The agents who handle this type of insurance earn around $45000 per year on average.
Fire insurance
Fire insurance covers the cost of property damage in case of an accidental fire. Whatever damage the fire has caused, the property owner needs to invest in the damages to renew his property. All those costs are covered by the insurance. Accidental fires include those caused by a burst gas cylinder, lightning strikes, short circuits, etc. however, if it is found that the fire was intentionally caused to get hold of the insurance money, criminal charges will be filed against the client.
Agents who handle fire insurance get a very good salary for their efforts. Their pay ranges from $85000 per year to $120000 per year. The median salary for fire insurance agents is around $95000 per year.
Burglary insurance
As the name suggests, this insurance covers the costs of property stolen or acquired forcibly by outlaws such as burglars. However, to claim burglary insurance, the client has to provide enough evidence that a burglary has occurred. This can be signs of forced entry, struggle marks with some occupant of the house, etc. Failing to do so will not give the client his desired money. Burglary insurance is almost always part of most commercial insurance policies.
The agents who handle burglary insurance cases earn around the national average of $50000 per year.
Construction insurance
Damages caused during construction work are covered by the construction insurance policies. This mostly includes any damage to property due to faulty machinery or negligence during apparatus handling. However, this also covers the cost of fatal injuries occurring during construction work. The types of construction insurance are:
- Builder’s risk
- Commercial liability
- Contractor liability
- Professional liability
- Automobile or truck insurance
- Construction bonds
- Compensation of workers
Most construction insurance agents earn around $25000 per year to $95000 per year. These people constitute the middle 50 percentile of all the agents. Salaries below the lowest figure and higher than the highest figure are rare but possible.
Cyber insurance
These insurance policies provide protection against cybercrimes which can affect the business of an organization and lead to loss of money. They also protect individual clients against breaches of sensitive information. Ransomware, malware, and DDoS may be used to leach out confidential information from an organization. Sensitive information includes the social security number, credit card details, health records, etc. Cyber insurances cover the costs of all these. Along with that, they also notify their client as and when a breach of data occurs. They also work to recover the data stolen. Lastly, they help the client to restore their computer systems back to normalcy.
Most cyber insurance agents earn something in the range of $25000 per year to around $120000 per year. Salaries below the lowest figure and higher than the highest figure are rare but possible.
Business Insurance
Any business is liable for property loss, fire damages, unethical deeds by their employees, etc. Business insurance covers most of these damages. In case of injury or death of an employee, the costs are also covered by the insurance. In a nutshell, any unforeseen event which leads to financial losses of a business is covered by business insurance policies. The various types of business insurance policies are:
- Liability policy
- General liability policy
- Professional liability policy
- Employee insurance policy
- Vehicle insurance
- Business interruption insurance
The salary of a business insurance agent is around $50000 per year.
Cargo insurance
Any damage done in a cargo business is dealt with by the cargo insurance agents. Cargo insurance covers costs of monetary losses occurring during the transit of goods or cargo. Two points on a map can be connected by either air, water, or land modes of travel. Any damage occurring in any of the three transit modes is covered by cargo insurance.
Cargo insurance agents earn around $45000 to $52000 as the national average.
Conclusion
Commercial insurance policies deal with monetary losses occurring in businesses or organizations. These losses can range from petty theft to burglary, cyber-crimes, fire damages, damages during transit, etc. Without an insurance agent, it becomes difficult for the client to grasp the whole situation. Commercial insurance agents have to be very diligent and are rewarded handsomely for their efforts. Through this article we have learned about Salaries For Commercial Insurance Agent.
