Insurance agents spend their days educating potential clients about coverage needs for their lives or businesses, but agents themselves also need the same policies they recommend. Errors and mistakes in their advice or services could cost them dearly, making it important for them to carry an insurance agent E&O policy.
Professional Liability Claims issued Against Insurance Agents
The right insurance coverage makes a difference when faced with the responsibility of professional errors. The following are some of the circumstances agents may encounter as they work with clients.
- Claims of failing to provide appropriate coverage and protecting the financial health of the client
- Claims of failing to fully explain the coverage terms and limits of the purchased policy
- Mistakes that occur administratively concerning renewals, maintenance, or claims processing
- Claims of poor risk analysis and failing to educate the client on important exposures
- Claims of failing to inform clients of changes in policy coverage
- Claims of failing to communicate accurate and important client information to the insurer
Protection for Liability Claims
Errors and omissions insurance, also known as professional liability coverage, takes the financial strain off an insurance agent if a claim is made against them. Even if the allegations are false, it can cost you thousands of dollars to provide a defense and clear your name. Take your own advice and carrying an E&O policy that covers your risks.