Insurance agent professional liability insurance, also known as errors & omissions (E&O) coverage, is for agents that provide an essential service to families and businesses by helping them find and obtain the proper insurance protection. Many insurance agents often don’t adequately consider the risks that are involved with their line of work. Simply by offering their recommendations for certain policies and services, whether as a purchase or declining certain insurance protection, agents could be setting themselves up for a lawsuit.
This can result in a liability claim in the event a client feels that they were given bad advice, which ended up being a costly mistake. Clients that end up facing a major problem with an insurance policy, (or a lack of coverage) could file a lawsuit against the insurer, possibly costing them their career, income and possessions.
Insurance agents gain valuable protection from E&O Insurance
Statistics show that nearly one out of seven insurance agents will be involved in an E&O claim at least once during their career. Brokers are also ranked fourth on the list of the most often sued professionals. An agent that is not properly covered by E&O insurance risks the likelihood of being held responsible for any damages if a claim is ever filed against them.
Professional liability coverage for insurance agents protects against any claim, whether it is real or merely perceived by the claimant that resulted from their personal involvement in the sale or servicing of an insurance product. The right E&O insurance plan will provide protection against claims arising from negligent acts, or errors or omissions from any activities or services provided as an individual agent or broker.
Although defending against a claim is always an undesirable circumstance, when the time comes that an agent is faced with this prospect, it will be good to know that the knowledge of the staff responsible for working on the claim will be invaluable when the time comes to protect both the agent and the agency. Look for a company that has specific experience in this very specialized insurance agent professional liability area. Speak to an agent today with any questions or concerns.