E&O insurance for insurance agents

Errors and Omissions insurance for insurance agents

It’s a risky world out there. That’s good news for you. It means more clients come to you for protection. Keeping you busy and your business booming.

The bad news is, it also means more risk for you. Each account you add, increases the odds of a claim being made against you.

No-one knows the power of a policy better than you. So get your own risk managed. Give your business the same protection you offer your clients with E&O insurance for insurance agents.

• Why do insurance agents need E&O insurance?

  Clients pay you for your advice and service. That makes you a professional. And as a professional you can be sued for negligence, even if you did nothing wrong.

  You know this. You tell your clients all the time.

  If a client claims you made a mistake, and it’s cost them money, E&O insurance can cover your legal costs and damages, too, if you’re liable. Even if a claim is groundless.

  So why not take your own advice? Think hard about why insurance agents need E&O – and how even small mistakes can cause big problems. Then protect your business with errors and omissions insurance for insurance agents.

• Are insurance agents required to carry Errors and Omissions insurance?

  Check your state’s laws. Depending on where you practice, you might be required to carry E&O as part of your license.

  If that’s the case, you may have to show proof of insurance on renewal. Or meet certain coverage limits. Some clients and professional associations ask for it, too.

  But whether you need it or not, carrying Errors and Omissions insurance is good practice for insurance agents.

  It’s there to protect your work, your bank balance, and your reputation. Because why would you risk that?

• What does E&O insurance for insurance agents cover?

  Also known as professional liability for insurance agents, E&O can pay your legal costs and damages for:

  • Claims you’ve made a mistake or left something out– even if you haven’t
  • Claims you’ve made an error in work you’ve done in the past
  • Worldwide claims – as long as they’ve been filed in the United States, a U.S. territory, or Canada

  You don’t want to think you might miss a renewal or arrange the wrong policy. But it can – and does – happen.

  These insurance agents’ E&O claim examples illustrate the different risks out there and how E&O can cover them.

• How much is E&O insurance for insurance agents?

  Insurance costs vary from business to business. The price you pay will depend on things like your business’s size, its location, and the limits and deductibles you select.

  As for what level of E&O insurance cover you want, you’ll have to decide what’s best for you.

  It’s always best to over-estimate. Lawyers’ fees, compensation, and court costs can go through the roof. So, imagine the worst-case scenario. Then pick a figure you can realistically afford.

  You don’t have to pay for your insurance all at once, though. You can spread the cost over monthly installments. Just choose the payment option that works best for you.

• What does General Liability insurance for insurance agents cover?

  General liability insurance covers claims for:

  • Third-party bodily injury – a slip, trip, or fall can cost thousands in medical bills, even for injuries that seem to be minor.
  • Third-party property damage – repairs, replacement, the costs can be huge. Your policy covers damage caused by you, and your full-time, or temporary, staff. And not just for damage to physical property, either. It covers electronic data, too.
  • Personal injury – He said. She said. Whether anyone said anything at all, claims of slander or libel can seriously damage your reputation. And the defense costs can seriously dent your bank balance.
  • Advertising injury – whether it was your idea, or theirs, arguing it out in court will be expensive.

  When a claim’s filed against your business, there are often hidden costs involved. Your General Liability insurance for insurance agents’ policy takes care of these, too. Including your loss of earnings.

What other kinds of insurance do insurance agents need?