While insurance agents are considered the experts in claims and liabilities, they themselves experience a number of risks that require insurance coverage. There are unique aspects to their job duties that present concerns that would vary from a manufacturing company or financial provider, so general liability insurance isn’t going to be enough coverage.
Preparing for the Unexpected
Errors and omissions insurance for insurance agents and brokers addresses the risks that can’t completely be prevented. This area of risk generally involves mistakes that have been made, but only when there was no malicious or illegal intent involved. Professional liability insurance takes care of the financial costs of claims or allegations that arise over the decisions an agent or broker makes or the advice that is given. More specifically, policies can provide coverage in the following areas:
- Professional mistakes (paperwork wasn’t filed correctly or a deadline was missed)
- Accusations of negligence (advice led to insufficient coverage)
- Claims of failing to deliver on promises made for insurance services
Preparing for the Future
With an E&O liability policy, it is important to make sure there are no gaps in the coverage. You will want a policy that can still cover claims made after your have left the industry, and many professional liability policies have this protection. Thoroughly evaluate what your policy will cover, making sure it can handle what you are facing now and what you may face in the future.