Insurance agents are in a unique position. They help other professionals get the insurance they need to protect their companies from lawsuits. They deal with finding coverage for all types of risks, from general liability and employment practices protection to worker’s compensation. Insurance in general is designed to protect people from mistakes on various levels, and insurance agents themselves need this too. When lots of money is at stake, problems can lead to lawsuits. Errors and omissions, or E and O insurance for insurance agents, is a wise policy to carry. It covers situations when actions taken by a professional cost somebody money or affect their profits, whether through a direct mistake or something being left out of those actions.
Hedge against Costly Mistakes
Every professional makes mistakes, but that shouldn’t cost them their career. Neither should a client be negatively affected with a poorly written contract that didn’t cover them in time of need. This might come up when a policy did not cover what a client thought it covered. That could cost the client money when he tries to make a claim, and they might want compensation from the insurance agent. Potential lawsuits like that are a good reason to justify E and O insurance for insurance agents.
Who Needs This Insurance
Without E and O insurance for insurance agents, an agency can suffer serious challenges legally and financially. People should consider strong errors and omissions policies if they are in one of the following positions:
- Reinsurance brokers
- Large retail agents
- Program managers
Like other professionals, insurance agents need professional liability insurance as a cost of doing business.