Even though the goal of an insurance agent is to provide coverage that protects their client from loss, these services are a potential concern for the insurance agents themselves. Carrying E and O insurance for insurance agents can help avoid some of the financial loss that might occur if they are sued by a client.
Errors and Omissions
The professional duties of an insurance agent have its own set of risks and exposures for potential litigation. If a client is unhappy in the services received, they may pursue legal action to recoup damages from the situation. An errors and omissions (E and O) policy is designed to assist with the financial needs that arise from a lawsuit.
Claims often made against E and O insurance for insurance agents include the following:
Failure to full explain coverage
Failure to provide and maintain appropriate coverage
Administrative and communication errors
Adverse results from poor risk analysis and identified exposures
Failure to disclosure policy changes
Failure to convey accurate client information to the insurer
In spite of your hard work and dedication to each client, there is always the potential for a slight hiccup in the overall process of establishing, maintaining, and filing insurance. Human error is unavoidable, but it doesn’t have to be costly. With a professional policy addressing errors and omissions, you can create a safety net in the event of a lawsuit or claim made against your office.