MGAs (Managing General Agents) sit in a unique spot between carriers and brokers, so their insurance needs are a mix of what a traditional agency needs and what a delegated underwriting authority requires. The exact coverage depends on the MGA’s scope of authority, contractual obligations with carriers, and operations, but here are the core lines MGAs typically carry:

Core Coverages

  • Errors & Omissions (E&O) / Professional Liability - Most important. Protects against mistakes in underwriting, binding, policy issuance, or compliance. Often required by carriers and reinsurers, with limits typically in the $5M–$10M range (sometimes higher depending on premium volume and delegated authority).

  • Cyber Liability / Data Breach - MGAs handle sensitive personal and business data, so cyber coverage is critical. Includes network security, data privacy liability, breach notification, and business interruption.

  • Directors & Officers (D&O) - Covers the MGA’s leadership against claims of mismanagement, breach of fiduciary duty, or regulatory investigations. Especially important if the MGA is VC-backed or has outside investors.

  • Fidelity Bond / Crime Coverage - Protects against employee theft or fraud, particularly around premium funds handling. Many carrier contracts require this (sometimes referred to as a "dishonesty bond").

Operational Coverages

  • General Liability (GL) - Standard business liability (slips, trips, office premises exposures). Usually low severity but often packaged with property coverage.

  • Workers’ Compensation - Required if the MGA has employees.

  • Employment Practices Liability (EPLI) - Covers employment-related claims (discrimination, wrongful termination, harassment). Increasingly relevant for growing MGAs.

  • Property / Business Interruption - Covers office space, equipment, and loss of income from disruptions.

Specialty / Contract-Driven Coverages

  • Surety Bonds - Some states or carriers may require surety or statutory bonds, especially if premium funds are being handled.

  • Reinsurance Protections (if applicable) - If the MGA takes on underwriting risk (rare, unless it has a captive or risk-sharing agreement), reinsurance arrangements may be necessary.