Although they work to address the risks and exposures of professionals and commercial ventures, insurance agents are susceptible to many of the similar liability claims they advise others on. For this reason, E&O insurance for insurance agents is just as important as it for the professionals they serve.
Why It’s Important
You may employ excellent staff and your office might have a stellar reputation, but this can’t protect from client claims that stem from unintentional errors. E&O is also called errors and omissions, and it’s professional liability coverage. For those who provide advice, investing or professional services, mistakes can occur that result in client loss. Many clients recoup their losses through a lawsuit.
Potential Claims Made
While errors and omissions will vary by industry and activity, some of the common things covered with claims filed on E&O insurance for insurance agents include:
- Actual or alleged negligence
- Defense costs
- Claims from services previously provided
- Libel or slander
- Damages and claims from financial loss
- Lack of comprehensive coverage
- Failure to disclose
There are some things E&O insurance for insurance agents won’t cover.
- False advertising
- Fraudulent acts
- Employment matters
- Failure to protect personal, identifiable information
As an insurance agent, be sure to take your own advice and thoroughly protect yourself from professional liability. Look into the applications of E&O for your business.