August 21, 2012 by bdorianz35f
insurance broker (Photo credit: ekea7)
E&O For Insurance Agents
Mistakes may happen during your work as a P&C insurance agent. It may occur as a breach of a client agreement. When such an mistake happens, a claim may be filed against your agency.
When you are properly protected by E&O coverage for insurance agents and brokers, you’re shielded from shouldering the complete cost of attorneys for any litigation that is leveled against you and your agency because of any error or omission that happened or allegedly occurred.
Statistically one in seven insurance agents will report an EO claim at some point during their career. Today insurance agents are 4th among professions for claims initiated against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).
Insurance agent brokers render vital services to customers through helping them to find and obtain complete insurance protection. Many agent brokers, though, rarely consider the risk involved with the insurance profession. Guidance that you suggest for policies, either to obtain or turn down could come back as a law suite in the event a customer claims that you were faulty in your judgment.
Customers facing a financial loss regarding insurance coverage, or lack thereof, could lodge a legal action naming you, endangering your business, livelihood and property.
Precautions you need to take concerning your profession. In the first place, your career as an insurance agency has a lot to do with the care you provide your clients. In the course of performing your duties as an agent broker, you may make or allegations leveled of an omission. Your clients could decide to recover damages legally.
If your agency is not adequately covered by E&O insurance policy, you may end up shouldering the complete cost of legal defense. You should help yourself with E&O insurance for property and casualty insurance agents. This is a business liability insurance device created to protect insurance agents from whatever errors, mistakes or omission that may be alleged or committed while discharging their duties.