As an insurance agent, you understand the importance of quality coverage for your clients. However, it is just as important for you as an insurance agent. Unfortunately, mistakes happen and, if it negatively affects your customer’s bottom line or life in any way, you run the risk of legal problems. Errors and omissions insurance for insurance agents helps to make sure you are protected in these situations. Here we look closer at E&O insurance, how it benefits you, and some of the best errors and omissions insurance for insurance agents.
What is Errors and Omissions Insurance (E&O)?
Often called professional liability insurance, errors and omissions insurance (E&O) is an insurance policy that covers you in the event a client files a lawsuit against you for inaccurate work, undelivered policies, or professional negligence. Unfortunately, according to a presentation made in 2018, the number of errors and omissions claims are on the rise, leaving many independent agents vulnerable to lawsuits. Adding an E&O policy can help ensure you are covered and will not lose everything because of a possible mistake.
E&O insurance coverage
Errors and omissions coverage takes care of legal defense costs, judgments, and even settlements in cases of mistakes, failures in coverage and explanations, and more. It does not, however, cover cases of white-collar crime and discrimination.
Why do agents need E&O insurance?
Mistakes happen even to the most seasoned insurance agents. Everything from simple typos when entering information to a misunderstanding when determining coverage can cause a client to file a lawsuit. Errors and omissions insurance covers these unfortunate situations and helps keep you, the agent, protected.
Failure to deliver expected services and coverage
Failure to deliver a policy in a timely manner or at all is a common cause for a lawsuit, especially if it affects the client’s bottom line. For example, if you provide health insurance and do not complete a policy or the coverage is not what the client expected, the client could discover that they do not have the coverage expected and may sue you for failing to secure the appropriate coverage.
Charges of agent negligence
As an agent, you have industry standards to adhere to. If a client feels these standards are not met, they can sue for negligence. In many cases, an unhappy client can sue for negligence even when you did nothing wrong.
Professional errors and mistakes
As we have said, mistakes happen. A simple mistake can cause your client to suffer a significant loss. In order to recover these losses, they may sue you for compensation, causing you significant loss. Errors and omissions insurance helps cover your legal fees and any judgments against you.
Best Errors and Omissions Insurance
As an insurance agent, you know the power of a good insurance policy. Making sure you are covered against potential lawsuits is an essential part of securing your business and your assets. Here we provide a list of some of the top E&O insurance options for insurance agents.
InsuranceBee is an insurance agency that specializes in insurance for insurance agents. They offer a wide variety of different business insurance designed for agents. These include E&O insurance, general liability, business owner’s policies, business personal property insurance, cyber liability, worker’s compensations, and more. Their E&O policies start as low as $22.50 a month.
BCS insurance developed one of the best and strongest agent E&O programs in the country in 1995. These policies are designed for insurance agents and offer a wide range of liability options. In addition, they offer cyber liability coverage also designed for insurance agents and the risks they face. Coverage costs vary by state and policy coverage.
Insureon specializes in hassle-free business insurance, including personal liability insurance, or E&O. They partner with A-rated insurance companies to offer a wide range of policies to help ensure every aspect of your business is covered.
Nationwide Insurance has partnered with L&M Financial Services, Inc. to provide agent professional liability policies that are created specifically for property/casualty and life-health insurance agents. They offer comprehensive policies backed by the Nationwide group of companies and underwritten by the most experienced people in the industry. They offer limits up to $10 million and provide the customization and flexibility you can appreciate in a policy.
National Association of Professional Agents (NAPA)
The National Association of Professional Agents (NAPA) specializes in providing insurance agents with benefits and services, including errors and omissions programs, cyber and data breach insurance, and more. These policies are catered to the unique needs that insurance agents experience. In addition to these available insurance policies, NAPA members also have access to additional benefits, including free continuing education, discounts on products, and free technical support to help prevent cybersecurity.