A Quick Guide to MGAs
Short for “managing general agent,” an MGA is a special type of insurance agent. He or she has underwriting authority and is responsible for creating programs, negotiating contractors for insurers, and much more. MGAs are a key component of a successful insurance agency.
Responsibilities of an MGA
An MGA has several key responsibilities when working for an insurance company. In addition to underwriting and pricing, he or she must also bind coverage, appoint retail agents in certain regions, and may even settle claims. The MGA works as a mediator between carriers and agents and is basically the insurance agent for the insurer.
Insurance for Insurance Agents
Insurance agents protect you when you need it, but what happens when the agents themselves need protection. That’s where MGA liability insurance comes in. Also known as errors & omissions (E&O) insurance, this type of policy protects an agent when things go wrong. Whether you need money to defend yourself in court or to pay someone if you’ve made a mistake in your work that negatively affects him or her, it is important to have this type of professional liability policy.
When choosing your policy, ensure that you work with another reputable agency. Find a provider that offers competitive rates, excellent reviews, and high-quality customer service to ensure you have just what you need.