Errors and omissions insurance is one of the most important types of insurance coverage you can have as an insurance agent. Due to the fact that you deal with sensitive information every day and are responsible for issuing appropriate policies for each of your clients needs, you are more vulnerable to lawsuits than most other professions. Purchasing insurance agents errors and omissions coverage can help protect your financial interests in the event you are sued for a real or perceived error.
What Does an Errors and Omissions Policy Cover?
Not all insurance agents errors and omissions insurance policies are identical, but most offer coverage for the following situations:
- Defense costs
Whether you are found guilty or not, you will be responsible to pay for your own defense. Having an errors and omissions insurance policy in place will help protect your financial interests. Without this important coverage, your business might not be able to financially survive the cost of a lawsuit.
When Should E&O Insurance Be Purchased?
If you own a business or are an independent insurance contractor, you should never run the risk of operating without E&O insurance coverage. The best time to purchase E&O insurance is before you are sued. In other words, the best time to obtain coverage is now.