Why Do Insurance Agents Need Their Own E&O Policy?
As an insurance agent or broker, you’ve explained Errors and Omissions (E&O) policies, also known as Professional Liability policies, to clients in many different business sectors. You’ve likely explained why their specific business would need such a policy, and how nobody is immune to mistakes. The same can be said for those who work in the insurance industry.
Why would you need your own Errors and Omissions policy? First off, if for any reason your client feels you failed to place coverage or failed to place adequate coverage, they could certainly file a legal claim against you. The severity of this claim will usually depend on the severity of the claim they were denied, however any type of claim can be extremely costly.
As you know from serving your clients, any business or individual that improperly performs services can cause a client to suffer an economic loss, which in turn can lead to them filing a claim to receive reimbursement for that loss. Even the impact of a baseless claim can be financially devastating to you and/or your agency. This is especially true if the claim is legitimate, and there was a clear error or omission; these types of claims can be difficult and expensive to defend.
Mistakes happen; even to the most skilled professional. The exposures facing insurance agents and brokers change every day, and it can be understandably difficult to keep up. This is why obtaining coverage for yourself is so important.
At PLRisk Advisors, we understand the unique Errors and Omissions risks Insurance Agents face, as well as the professional liability risks each of your clients face. Please contact us today at (855) 403-5982 to learn more about our products and coverages.