No one plans on making mistakes, but some errors or misjudgments can be costly for clients and result in a lawsuit for your business. As an insurance agent, you are responsible for providing protection for a client’s business and personal lives, which is why errors and omissions insurance for insurance agents and brokers is vital.
Why Insurance Agents Need an E&O Policy
When you provided services and products that protect the personal lives, assets and businesses of clients, any mistake in the process could be costly. Honest mistakes happen, but that doesn’t make the damage any less devastating. If a client is unhappy with the result of your services due to a mistake on your part, you or your company can be held responsible. Thankfully, E&O insurance provides the financial assistance you need to handle these situations.
How an E&O Policy Can Help
Having errors and omissions insurance offers the coverage you and your agency needs to prepare for any claims of negligence and errors in providing services.
This policy covers the funds needed for the following:
- Hiring a lawyer
- Associated legal fees
- Settlements and fines
Today’s culture makes it easier than ever for clients to file lawsuits for wrongdoing, even if it was an honest mistake or not your fault. To mitigate this risk, you need errors and omissions insurance for insurance agents and brokers.