Errors and omissions insurance is common among insurance agents for protection against professional liability. The E&O insurance for insurance agents is valuable if any customer sues for unprofessionalism. This type of insurance policy covers the court fees for the litigation process followed by mistakes in your professional services.
Coverage of E&O Insurance
The coverage of E&O insurance for insurance agents revolves around the following:
- Negligence accusations: When customers sue insurance agents, E&O insurance can help pay the legal fees. A common example of negligence is when an agent allows a client to have insufficient coverage, and a road accident makes the client pay too much from their pockets.
- Failing to follow timelines: Policyholders want insurers to sanction their claims as fast as possible. Clients sue insurance agents if they fail to fulfill claim requests within a specific timeframe.
- Professional mistakes: Mistakes in the insurance industry can prove to be fatal. For instance, customers might file a lawsuit when an insurance agent recommends inappropriate liability coverage to them.
Is E&O Insurance for Insurance Agents Expensive?
The cost of E&O insurance for insurance agents varies according to the following factors:
- Claims history
- Business type and size
- Location
- Liability coverage amount
The American Agents Alliance is the best place for insurance agents to get errors and omissions insurance. The company aims to empower insurance agents and businesses. If you run an insurance business or are an insurance agent, check out the different benefits offered by the company.
