March 17, 1796, Fire Insurance Policy (Photo credit: Wikipedia)
Errors And Omissions Insurance For Insurance Agents
Omissions can occur anytime while you work as an insurance agent. It may come up as a breach of a client agreement. When such an mistake happens, litigation may be filed against you. When you are properly protected by E&O coverage for insurance agents and brokers, you’re shielded from shouldering the full cost of the defense for any lawsuit that is filed against you because of any error or omission committed or allegedly occurred.
Statistically 1 out of every 7 insurance agents will report an EO claim at some point during their career. Today insurance agents are 4th among professions in number of claims being filed against them. Only physicians, attorneys and accountants have more. (Tillinghast Survey)
Insurance agent brokers render vital services to individuals, families, and businesses by helping them to find and obtain adequate insurance protection. Most independent agents, though, do not consider the risk involved with retail insurance sales. Recommendations that you provide for insurance, either to purchase or turn down may come back as a law suite in the event a customer decides that you were wrong in your judgment. Customers facing a financial loss regarding insurance coverage, or lack thereof, may lodge a claim naming you, endangering your career, livelihood and property.
There are precautions you need to take concerning your profession. In the first place, your career as an insurance agent has a lot to do with the care you provide your clients. In the course of performing your duties as an agent, you may make or allegations leveled of an error or mistake. Your clients could decide to recover damages legally.
If your agency is not adequately covered by an E&O insurance policy, you may end up shouldering the full cost of legal defense. However, you can help yourself with insurance agents E&O insurance. This is a business liability insurance device tailor made to protect insurance agents from whatever errors, mistakes or omission that may be alleged or committed while discharging their duties.
Insurance Agents Errors and Omissions Insurance 