You run an insurance agency. Does this mean that you need insurance? You may have insurance for your building and its contents, and you may have health insurance for your employees. However, there’s another kind of insurance you may have forgotten about. E&O insurance for insurance agents can be of great benefit to your business.
What Errors and Omissions Insurance Does For You
Have you ever made a mistake? Of course, you have. Most of your mistakes are probably minor, but what would happen if a work-related error led to a significant problem with an insurance policy? While traditional general liability insurance covers property damage and personal injuries, E&O insurance protects those who give professional advice and services. This type of insurance is also known as professional indemnity or professional liability insurance.
When Do You Need E&O Insurance?
We all make mistakes, and when you’re in the business of giving advice, a mistake that you make could hurt others. Even if the negligence is unintentional, if your employees are negligent, a client could file a negligence claim due to your alleged failure to perform or due to a loss caused by your agency’s error. For example, if you fail to provide requested coverage for one of your client’s needs and your client suffers a loss in this area, the client might bring a claim against you. During a lawsuit, insurance can help you pay for your defense. If you are found to be liable for the error, insurance will also help to pay for damages awarded as a result of the lawsuit.
Choosing Your Insurance
E&O insurance is not a place to cut corners. As an insurance agency, you understand the value of a thorough policy. You need insurance that covers your needs completely. The unexpected can happen, and that’s why we have insurance. When you need errors and omissions insurance for your business, the American Agents Alliance can help. We offer affordable premiums with no aggregate deduction limit, and we also offer discounts for agencies who have staff with CIC designations. We work with many insurance agencies around the country, and our membership provides benefits far beyond E&O insurance as well. Find out how we can work for you. Contact the American Agents Alliance today.