You try to achieve excellence in everything that you do, but sometimes you make mistakes. Hopefully those mistakes aren't critical, and hopefully you can fix them easily with with very little trouble. However, when you're working as an insurance agent, you hold peoples' most important assets in your care. Your agency needs errors and omissions insurance in case you do make a mistake that causes harm to your clients.
What Does Errors and Omissions Insurance Do?
Everyone makes mistakes, but when you're a professional who's providing advice to a client, you need E&O insurance to cover you and your agency in case of an unintentional error or omission in your work. These errors could have a financial impact on your client, and that person may need to recoup their costs. An E&O insurance policy covers the costs of errors and omissions and the costs of lawsuits related to these errors. If you have a small insurance agency, a lawsuit can wreak havoc on your finances. E&O insurance takes away the worry about legal threats that result from unintentional acts. You must purchase this insurance before an incident occurs to insure yourself against future errors or omissions and protect your business.
When Is Errors and Omissions Insurance Useful?
Errors and omissions insurance is useful in many different circumstances in the insurance industry. While it doesn't insure against misunderstandings, it does insure against a failure on your part. For example, you may be filling out paperwork for rental insurance for a new client, and you set it aside to go to lunch. A few months later, the client calls because of a small fire in their apartment. You realize that the insurance paperwork you'd filled out was never entered into your system: the client is uninsured, but this is your fault. The client paid for the insurance up front and needs to be reimbursed. Errors and omissions insurance can help here. You could also fail to check a box on a document to add additional insurance for a particular client's need, or you might fail to get the appropriate signatures on a document to make it legally binding. Whatever the error, E&O insurance can help make things right for you and for your client, so that neither of you suffers due to your mistake.
Getting E&O Insurance
When you're looking for E&O insurance, you may need to provide information about your company's history, standard contracts, training procedures, and quality control processes. If you've had claims in the past, now is a good time to consider how you can avoid those claims in the future so that you will not repeat the same mistakes. What processes can you create to avoid having to use your E&O insurance?
If you're looking for insurance agency E&O, talk to the American Agents Alliance. 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 online in minutes. We can even include your affordable member dues as part of the program’s convenient payment installment plan. If you are an independent property and casualty insurance agent, see for yourself by clicking here to get a quote, and please don’t hesitate to contact us if you have any questions about our E&O insurance program for P&C insurance agents.