Insurance Agents Errors And Omissions

Insurance Agents Errors And Omissions

Mistakes and errors may happen during your work as a P&C insurance agent. It can occur as a breach or negligence of a handshake agreement. When an error or omission occurs, a claim may be lodged against your agency. If you’re adequately covered by errors and omissions insurance for P&C insurance agents, you’re protected from financing the complete expense of attorneys for the litigation that may be leveled against you and your agency resulting from the mistake that happened or is alleged.

Statistics prove one out of seven agents will file an E&O claim during their career. In fact, insurance agents rank fourth among professions for legal claims initiated against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).

Insurance brokers provide essential services to customers through assisting them to locate and acquire complete insurance coverage. Many agent brokers, however, rarely think about the exposure that is involved with property and casualty insurance sales. Guidance that you suggest for policies, either to obtain or skip, could return as a EO claim when a client claims that you were faulty in your direction.

Clients facing a major problem with an insurance policy, or inadequate coverage, could file a legal action against you, threatening your business, income and possessions. There are certain precautions you should take regarding your livelihood.

Your profession as an insurance agency has a lot to do with the care you render your customers. When carrying out your obligations as an agent broker, you may commit or be accused of an omission. Your customers may decide to seek justice in court. If you’re not properly protected by EO insurance coverage, you could wind up financing the complete expense of attorneys.

You should protect yourself with EO insurance for insurance agents. This is a professional liability insurance instrument created to cover insurance agents from whatever errors, mistakes or omission that may be alleged or committed in the course of day to day business.