It depends on your carrier. Most E&O policies will require a monthly base fee for the Broker, who is the responsible party in an agency. Individual agents may be required to obtain their own policies, depending on how the brokerage employs the agents. The base fees may be increased for agents added to the policy, they may not.

Talk to your insurance agent.

Hope this helps.

Source: http://www.abusinessmentor.com

Multi-person firms are rated per person per 6 months or 12 months and rated by commission level (greater or less than $20,000 per policy period, for instance). The idea is that someone with less commission is working less, has fewer transctions and creates less exposure.

Some companies that franchise, such as C21 or Tarbell, may have a completely different system, such as one where agents buy in to a master policy every 6 or 12 months. Check with your broker for details.

From my experiences with E&O Insurance is it is based on your yearly Revenue and the services i provide taht generate that revenue at least that is how they determone my premium for my titlke insurnce company.

Title Insurance Companies

Source: http://www.assureamericatit...