E&O Insurance
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Errors & Omissions Insurance for Insurance Agents
At the American Agents Alliance, we’re independent P&C agents ourselves. Our E&O insurance program was built BY insurance agents, FOR insurance agents. Unlike many other E&O programs, there is no aggregate program limit in our E&O program. It’s incredibly easy for you to quote and bind high quality, affordable and admitted E&O in minutes.
Our Errors and Omissions Insurance for insurance agents and brokers is a type of professional liability insurance designed to protect your company and employees from the financial burden that comes with lawsuits.
The Key Features
- A-rated & admitted carrier
- Special rates for new agents – as low as $650
- Monthly payment plans
- Cyber liability extension included
- Affordable premiums
- No aggregate program limit
- No charge for support staff
- Discount for agencies with 50% or more staff who maintain CIC designations
- Deductible waiver endorsement available after participating in the program for 3 years
What's Covered
- First dollar defense; deductible applies to damages only
- Defense costs outside the limit of liability – subject to a cap of $1M
- Limits up to $3M each claim / $5M aggregate each agency
- Court expenses and the court-ordered settlements that result from the cases (up to the maximum amount specified in the policy)
- Limited EPLI coverage available
- Employment practices wrongful termination liability coverage available
These descriptions of coverage are abbreviated and are subject to the terms, conditions, and exclusions of the actual policy, which forms the contract between the insured and the insurance company. Available coverages, credits, and options may vary by state. Brown & Brown Program Insurance Services, Inc. dba CalSurance Associates 0B02587.

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Who needs E&O insurance?
Companies and professionals that offer services are the ones who’ll benefit from an Errors and Omissions insurance policy. Attorneys, wedding planners, stylists, PR managers, architects, and computer technicians can all be brought to court by customers who are unhappy with their services. To ensure that they can afford to face the charges and protect their company from financial repercussions, they can file a claim on their E&O Insurance and receive additional funds for their litigation costs.
Insurance agents, investment managers, and financial advisors are just as vulnerable to lawsuits, if not more so. There are no guarantees that investments and financial products will be successful every single time. Even if clients are aware of the risks when they opt-in on investments and insurance policies, they might still feel slighted when things don’t happen in their favor.
This is why we offer insurance agencies and independent insurance agents E&O insurance protection. It is for their — and your — peace of mind. Receiving a lawsuit alone can give you immense stress and worry. You shouldn’t have to worry about money as well when you can have a sound solution right here, from the American Agents Alliance.


How much does E&O insurance cost?
Are you hesitant to get an umbrella policy for your agency because of the cost? Don’t be. The American Agents Alliance offers competitive prices for individual and corporate clients. New clients, for example, can take out an E&O insurance policy and pay premiums as low as $650.
The cost of E&O insurance, however, depends, on the number of agents working in your office. There are special rates for new agents and discounts for agencies with 50% or more staff who maintain CIC designations.
E&O Insurance Q&A
Review some common questions and answers regarding error and omissions insurance for insurance agents.
Errors and omissions insurance is a type of professional liability insurance designed to protect your business from lawsuits. As an insurance agency, your business could be sued due to perceived or actual errors that your agents have made. When you are selling insurance products and offering insurance advice, you need insurance coverage for any action which could have negative results for your clients and customers. Errors and omissions insurance takes care of this for you, ensuring you can cover the costs of legal fees, court expenses, and settlements.
Insurance agencies may need E&O insurance more than many other businesses. Your agency is vulnerable to lawsuits, with a risk of customers wanting to hold you responsible if they don’t get what they want from their insurance policy. Taking out an errors and omissions insurance policy is one of the best ways you can protect your business. No agency can ever completely remove the risk of lawsuits, but you can ensure you are prepared and have the best protection. It’s especially important for small businesses to get the right coverage in case anything happens in the future.
If your insurance agency ever faces a lawsuit, which is fairly likely to happen at some point, you don’t want to deal with it alone. Lawsuits can be extremely expensive right from the start, especially if they are not resolved quickly. An errors and omissions insurance policy protects your company and employees from the financial burden that a lawsuit can bring. Without one, you are left to pay for any resulting costs from a lawsuit yourself, including legal fees, court expenses, and any money that you might need to pay out to the complainant.
Errors and omissions insurance isn’t a legal requirement for insurance agencies in California. However, there are times when it could be a requirement for other reasons. It’s still an extremely valuable type of protection to have for your agency if you want to create a secure future. There is always a chance that your agency or employees could make a mistake, or your clients will perceive that you have, and you could be subject to a lawsuit. You don’t want this to happen without being covered by an insurance policy that will protect your finances.
Our E&O insurance covers several types of costs that your agency can face in the event of a lawsuit. When you take out one of our insurance policies, you get coverage for:
- First dollar defense, with the deductible only applying to damages
- Defense costs outside of the limit of liability up to $1 million
- Cyber liability extension included for no additional cost
- Limits of up to $3 million per claim or $5 million aggregate each agency
- Court expenses and court-ordered settlements
- Limited EPLI coverage that includes wrongful termination liability coverage also available
There are some things that you typically won’t find included in your liability coverage from an E&O policy. It doesn’t include coverage for bodily injuries, and it’s not intended to protect against property damage. In these cases, general liability insurance is normally the type of policy that will provide the protection that you are looking for. Other things that are most likely not covered under errors and omissions insurance include a data breach or failure to protect personal information, infringement of patents or theft of trade secrets, fraudulent acts, and false advertising.
Errors and omissions insurance is a type of professional liability insurance. In fact, you might see E&O insurance and professional liability insurance used interchangeably. Professional liability is a term that has historically been used for certain professions, such as doctors and lawyers, while errors and omissions insurance has been used to describe liability insurance for other professions. However, as time has gone on, the two terms have come to effectively mean the same thing. They both describe insurance that covers third-party claims that don’t involve bodily or property damage. Malpractice insurance is also similar but is used by healthcare professionals.
As these are essentially the same thing, which one you choose doesn’t necessarily make a big difference. Some people in certain professional areas such as architecture or real estate might choose professional liability insurance over errors and omissions insurance. When talking about insurance for insurance agents and brokers, errors and omissions insurance is the term that you will see most often.
General liability insurance is another type of insurance that might benefit your insurance agency but, unlike professional liability insurance, it’s not the same thing as errors and omissions insurance. General liability insurance protects your business if a customer or client sues you over injury, property damage, libel, or slander. On the other hand, E&O insurance is designed to provide coverage when you are sued over a professional mistake or oversight. Therefore, it is smart for businesses to have both types of liability insurance to protect them in a range of different circumstances.
The cost of any type of business insurance is affected by several different factors. When it comes to errors & omissions insurance, one of the factors that will affect the price is the industry or profession, coverage limits, claims history, and business size. The number of agents that an insurance agency has is one of the most significant factors when considering E&O insurance costs. Larger insurance agencies will typically pay higher premiums, while a small business will have lower costs. At the American Agents Alliance, we also have special rates for new agents and discounts for agencies with CIC-designated agents.
There is no one-size-fits-all amount of coverage for all insurance agencies, but you can naturally worry that you’re not taking out enough. You might also be thinking about balancing the cost of the premiums with the amount of coverage that you get. Our insurance program can give you limits up to $3m for each claim, while our premiums are as low as $650 per year. With affordable premiums, you can get the coverage that your business needs without having to pay over the odds. Similar to the cost of your insurance policy, the amount of coverage you need should also take into account factors such as the size of your business and your history of claims.
Not all lawsuits occur when your agency is actually at fault. Some lawsuits can be brought by a client who believes you have caused them a financial loss, even if that’s not the case. Fortunately, your insurance can protect you in these circumstances, so you don’t have to worry.
Maintaining a valid E&O insurance policy is crucial if you want to be protected while carrying out your business activities. E&O insurance is a claims-made policy, which means that it needs to be in place when the claim was filed and when the incident happened. That makes it even more important to maintain your errors and omissions insurance coverage compared to some other types of insurance.
Getting started with errors and omissions insurance is easy. There’s no need to spend time deliberating over multiple quotes with the American Agents Alliance’s quick quote process. Start your quote by giving us some basic information about you and your agency. You can bind our E&O insurance in minutes and get the protection your agency needs. Plus, you’ll access all membership benefits once you bind.
It’s important to get errors and omissions insurance as soon as you can. If you wait until you are faced with a lawsuit, it will be too late to take out insurance and protect yourself. Your insurance also needs to cover the period when the incident relating to the lawsuit happened, so the earlier you get it, the better your chances of being protected are. Whether you already have E&O insurance or you’re looking for a new provider, don’t delay in getting started with a quote. If you’re looking for a new provider, be sure to avoid gaps in your coverage so that you’re protected even during the period when you change your provider.
If you want further insurance protection later, you can always speak to one of our agents about increasing your coverage. We also have limited EPLI (employment practices liability insurance) coverage available, as well as wrongful termination liability coverage. Our disability insurance programs offer another way to protect you and your agents as a member of the American Agents Alliance.
Multiple benefits are available for members of the American Agents Alliance when you choose E&O insurance with our program. Some of the advantages include:
- No charge for support staff
- Special rates and coverage options for new agents (less than two years of experience)
- Limited EPLI coverage
- Deductible waiver endorsement after participating in the program for three years
- Discounts for agencies with 50% or more staff maintaining CIC designations
Choosing the right errors and omissions insurance policy and provider is crucial. However, every insurance agency may have different priorities when it comes to selecting a policy. For some, getting the cheapest possible premiums might be the most important factor that affects their choice. Other business owners might decide that it’s more important to secure robust coverage for their agencies, even if they might be paying a little more. You can make sure that you are choosing the right option by knowing what you want from your policy and comparing the different options available to you. Measure your options against the things that you prioritize to find the best policy and provider to meet the needs of your agency.
Remember to look at reviews and testimonials to determine what current and past clients have to say. This can give you a good indication of whether an insurance program or provider is right for your agency.
When you need to make an E&O claim, it’s essential to do it as quickly as possible. If you don’t report a possible claim as soon as you can, you could risk having your claim denied. Even before you’ve decided to make a claim, it can be useful to let your provider know that you could be making one in the near future. If you need to make a claim, get in touch with us as soon as possible for advice and to get started.
Your agency should also have errors and omissions policies in place so that everyone knows the procedure that should be followed if a claim is filed against you.
Being aware of the issues that could lead to a legal claim can help your agency to avoid them. Some of the most common issues that could lead to this type of lawsuit could include failing to inform clients of changes in their policies or failing to explain coverage properly so that clients understand. Many of these mistakes are not intentional but can still lead to problems for your agency. It’s important to be aware of what could lead to a lawsuit and how to keep your agency’s policies and practices up to date.
Reducing the likelihood of lawsuits can help you to avoid making claims with your errors and omissions insurance. There are many ways to avoid common claims by taking the right steps within your agency. For example, keeping clients informed of changes in their policy, training agents in risk analysis, and clearly explaining coverage to clients are just some of the ways to avoid getting sued for mistakes and misinformation. There are also multiple tools that make it easier to manage your agency and avoid the problems that lead to E&O claims. These include robotic process automation, optical character recognition, electronic signatures, and automated certificates of insurance.
When faced with a claim from a plaintiff, it’s important to take the right steps. Agencies should avoid admitting wrongdoing or liability and shouldn’t attempt to settle without legal help.
If your errors and omissions insurance policy expires and you don’t have another one in place, you won’t have the essential protection that it provides. If you are faced with any lawsuits relating to activity during the uncovered period, you won’t be covered by any future E&O insurance policy.
Insurance agents and brokers have a general duty to procure coverage as required by their clients or to inform them if they are unable to do so. In California law, there is no obligation for agents to volunteer advice on purchasing different or additional insurance coverage. However, agents should use responsible care, diligence, and judgment to provide coverage and this duty can be extended in some circumstances. “Special duties” are created if the coverage is misrepresented, the agent fails to secure coverage that has been specifically requested, or the agent presents themselves as having expertise in the type of insurance they are selling.
You should review your errors and omissions insurance coverage on a regular basis. It’s important to check that you have enough coverage, especially if anything has recently changed within your agency or you are anticipating a higher number of claims, for whatever reason. You should review your policy to make sure you know how much coverage it provides you and in what circumstances it will protect you.
Taking out errors and omissions insurance is just one way to protect your business. There are other types of business insurance that your insurance agency can benefit from. Some of the types of business insurance to consider include:
- General liability insurance
- Commercial property insurance
- Workers’ compensation insurance
- Business income insurance
- Product liability insurance
- Employment practices liability insurance
- Cyber liability insurance
- Commercial umbrella insurance
These are just some of the insurance policies that you might want to take out to protect your insurance agency, in addition to errors and omissions insurance.
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