The competent and savvy insurance agent works hard to find the best professional liability insurance package to protect their clients. It’s just as important for these agents and brokers to have sufficient coverage to protect themselves against unwanted claims of professional errors or omissions.
What Does Errors and Omissions Insurance Cover?
E&O insurance for insurance agents and brokers protects against accusations of professional errors and misunderstandings by clients. Legal fees and settlements are extremely difficult for a small firm to pay. E&O insurance will help cover these expenses.
The policy provides protection against many claims. Examples include:
- Professional errors – A client may sue an insurance agent because of mistakes or oversights in their insurance policy.
- Claims of professional negligence – Claims adjusters, along with other insurance professionals, can be held liable for claims of advice that led to insufficient coverage.
- Unfulfilled promises of services – If your company isn’t able to perform a promised service or the work isn’t completed on time, you may be sued.
It’s important to remember that an E&O policy must be active not only when the alleged incident occurred but also when the claim was made, so make sure your coverage considers provisions.
Ensure that your own business is protected with the same comprehensive package that you offer your clients.