Commission Only Teams

Insurance for Commission-Only Teams

Protect your commission-based sales team from professional liability, client disputes, and data breaches. Get comprehensive coverage designed for sales professionals.

Why Commission-Only Teams Need Insurance

Commission-based sales teams face unique risks that require specialized insurance coverage.

Client Misrepresentation Claims

Clients may claim they were misled about products, services, or commission structures.

Contract Disputes

Disagreements over commission rates, payment terms, or performance expectations.

Data Privacy Issues

Handling client data, leads, and sensitive information requires cyber protection.

Performance Guarantees

Clients may sue if promised results aren't delivered or if sales targets aren't met.

Team Member Issues

Individual team members can create liability for the entire team or company.

Regulatory Compliance

Sales activities must comply with various regulations and industry standards.

Essential Coverage for Commission Teams

These coverages are essential for protecting your commission-based sales team.

Errors & Omissions (E&O)

Professional liability for sales mistakes, misrepresentations, and service failures.

  • • Misrepresentation of products/services
  • • Commission structure disputes
  • • Performance guarantee failures
  • • Contract interpretation issues
  • • Client relationship problems

General Liability

Protection against bodily injury, property damage, and personal injury claims.

  • • Client injuries during meetings
  • • Property damage at client sites
  • • Slip and fall accidents
  • • Equipment damage
  • • Third-party injuries

Cyber Liability

Essential for teams handling client data and digital sales processes.

  • • Client data protection
  • • Lead database security
  • • Ransomware attacks
  • • Business interruption
  • • Regulatory compliance

Employment Practices

Protection for employment-related claims from team members.

  • • Wrongful termination
  • • Discrimination claims
  • • Harassment allegations
  • • Wage disputes
  • • Commission payment issues

Real Claims Scenarios

These are actual claims that commission-based sales teams face. Without proper insurance, these could be devastating.

Misrepresentation of Commission Structure

A sales team promised clients a specific commission structure but later changed the terms. Multiple clients sued for breach of contract, seeking $100,000 in damages.

Result: E&O insurance covered the settlement and legal defense costs.

Client Data Breach

A sales team's CRM system was hacked, exposing client contact information and sales data. Clients sued for privacy violations totaling $75,000.

Result: Cyber liability insurance covered notification costs, legal fees, and client settlements.

Performance Guarantee Dispute

A sales team guaranteed specific revenue targets but failed to meet them. The client sued for lost profits and breach of contract, seeking $50,000.

Result: E&O insurance covered the legal defense and settlement costs.

Coverage Recommendations

Recommended coverage limits based on your team size and revenue.

Small Team (1-5)

E&O Coverage $1M / $2M
General Liability $1M / $2M
Cyber Liability $1M
Annual Premium $2,000 - $5,000

Medium Team (6-20)

E&O Coverage $2M / $4M
General Liability $2M / $4M
Cyber Liability $2M
Annual Premium $5,000 - $12,000

Large Team (20+)

E&O Coverage $5M / $10M
General Liability $5M / $10M
Cyber Liability $5M
Annual Premium $12,000 - $30,000

Protect your sales team

Get quotes from carriers that understand commission-based sales teams. Fast, competitive rates.