As a property and casualty insurance agent, your clients rely on you to sell insurance products that protect them against a variety of damages. If you fail or misrepresent your products, you could face damages yourself without an errors & and omissions policy.
Here are common claims that you should have E&O for P&C agents.
Misrepresentation About a Product
What you need to understand about misrepresentation is that it is not always intentional. While lying about the features or benefits is considered misrepresentation, many carriers do not do it intentionally. For instance, you may misstate how a product works, leading to misconceptions about your client’s benefits.
Failure to Procure Insurance
About one in five of all claims against P&C agents occurs due to a failure to procure coverage. If you do not diligently shop for coverage, competently quote, sell or install solutions or do a thorough analysis of your client’s risks, you may be unable to provide insurance.
Failure to Identify Exposures
A part of ensuring that your client has adequate coverage is determining what the client’s risk exposures are. If you fail to identify exposure and your client suffers a property loss that he or she should have had coverage for, the client can file a claim against you.
Mistakes can happen in any industry. When your clients rely on you to provide adequate coverage, you cannot afford errors without having coverage for yourself.