As an insurance agency, you focus a lot of time and energy on protecting your clients against liability exposure. Your insurance agency needs an Errors & Omissions policy to address your risks.
Types of Errors That Require E&O Coverage
Mistakes happen in the insurance industry. E&O covers your agency against professional mistakes, allegations of negligence, failures to deliver promised services and more. When a client files a lawsuit claiming that you or your agency made a mistake that led to their financial loss, you have to pay the legal fees to fight the allegations. If the court finds you liable, you have to pay the settlement costs.
Factors to Consider When Purchasing E&O Coverage
When it comes to E&O coverage, you have to consider several different factors. These factors include your operation’s exposures, how much of an increase your exposures have had in the last several years and the net worth of your clients.
The coverage that you choose needs to correspond with your risk profile. If you are a large, multi-faceted insurance agency or a smaller organization, you need customizable options.
Every industry is vulnerable to lawsuits. As an insurance agency, if you make mistakes and your clients allege that you misled them, you could lose everything. E&O insurance for insurance agents and agencies protects your business against financial losses.