As an insurance agent you are providing professional services to clients. This exposes you to major liability risks. Liability is the legal responsibility for your acts or omissions. If you make a mistake and fail or are perceived to fail to fulfill that responsibility then you become vulnerable to a lawsuit for any resulting damages. Liability losses are the money an entity must spend to respond to claims against it. Even if the entity is not responsible for any legal wrong, monetary liability losses might be incurred while defending a claim brought against you or the company.
Be Prepared for the Worst
Despite careful planning and execution, top professionals can be accused of errors and omissions (E&O) at any time. E&O insurance for insurance agents will make coverage available to clients that will contribute toward awards and settlements, as well as legal defense costs.
Some Professionals are at Higher Risk
Any insurance agent could benefit from this type of coverage, but if your job title matches one of the following specialties then you are likely susceptible to extra E&O risk:
- Program manager
- Captive manager
- Managing general agent (MGA)
- Managing general underwriter (MGU)
- Specialist in “Hard to Place” risks
- Reinsurance broker
- Large retail agent
- Significant claims agency
- Those who utilize stand-alone enterprise resource planning (ERP)
An Errors and Omissions (E&O) policy provides your clients with coverage that contributes toward legal defense costs, damage awards and settlements. E&O insurance for insurance agents is a customizable solution for the daily risk to you and your business.