E & O Insurance Coverage
Carriers require insurance agents to have Errors and Omissions insurance because it’s is a necessity for any professional in today's litigious society. E&O insurance policy provides coverage for claims arising out of acts, errors and omissions in the rendering of, or failing to render, professional services for others as a licensed insurance agent.
We also recommend the following Errors and Omission companies:
What is E&O insurance?
Errors and omissions (E&O) insurance, also called professional liability coverage, insures professionals against client claims of error, omission, or negligence in the performance of their professional duties.
E&O insurance for insurance agents and brokers provides protection against the following common client claims: that the customer was unfairly denied coverage, provided inadequate, inappropriate, or financially unsound coverage, or not properly informed about coverage changes, limitations, or termination.
Why is insurance agents E & O insurance necessary?
Most agents and brokers are required by their insurance markets to carry E&O insurance.
General business owner’s policies do not include professional liability insurance, covering losses and legal expenses resulting from client claims of error or negligence.
Lawsuits against insurance agents and brokers are increasing.
What else should I know?
Pricing and coverage for E&O insurance policies varies. Factors include the agent's or broker's size and location, the services provided, and the business's classification.
Successfully defending an errors and omissions case requires documentation. Agents and brokers should always maintain detailed records.
Not all client claims against insurers feature a clear-cut error or omission. Unfortunately, these claims still can be difficult and costly to defend.
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