Although many insurance agents may be quite familiar with insurance terminology, it is wise to be familiar with terminology from any insurance that is covering you, especially errors & omissions insurance for insurance agents. Although below is discussed some definitions of terminology, for any questions that may arise about a personal policy it might be wise to consult with an insurance agent from your company to be certain for how that agency defines a term and what your coverage really entails.
“Defense costs” is a term that generally means the monetary amount it may require to defend in a trial. Many insurance companies will usually cover this.
“Personal injury” is a term meaning that, in this case, someone circulated information that was untrue and damaging to a person’s reputation, which is slander. Many insurance agencies will help protect policy holders from accusations of personal injury.
“Negligence” means the client felt neglected or that the client’s needs were not met. This can be through a mistake, incorrect consultation, or outright dismissal of the client’s wishes. Many agencies will protect a policy holder whether the neglect is true or only alleged.
These are a few terms one might run into with errors & omissions insurance for insurance agents. It is also important to understand that while an agency will usually help with most defenses, many will not assist outright dishonest or criminal acts. Some will even require that defense costs are paid for should dishonest or criminal acts come to light.