What type of insurance should brokers obtain for their business?

Brokers should prioritize obtaining professional liability insurance, commonly referred to as errors and omissions insurance, to protect against claims arising from mistakes or negligence while providing their services. This type of insurance is crucial in the brokerage industry, where clients rely on brokers for expert advice and missteps can lead to substantial financial losses for clients. Professional liability insurance covers legal fees and any settlements or judgments that may arise from such claims, thereby safeguarding the broker’s financial stability and reputation.

While the other options address important aspects of running a business, they do not specifically cater to the unique risks associated with brokerage services. Property insurance protects physical assets, which is essential for any business with tangible property but does not cover the risks of professional advice or actions. Business interruption insurance is valuable for ensuring that income loss from unforeseen events is covered, yet it does not address liability for professional conduct. Auto insurance, while necessary for companies with vehicles, is not related to the professional risks that brokers face in their practices. Therefore, the emphasis on professional liability insurance makes it a critical component of a broker's risk management strategy.