E&O Coverage: The Importance of Quality Coverage
They say “to err is human,” but if you're in a service industry like insurance, “to err” usually winds up costing you money – sometimes a lot.
- E&O coverage for insurance agents is designed to protect you from the unexpected and unforeseen
- It offers policy protection that can be customized for your specific needs, including your risk exposures and your budget.
Everyone knows professional liability coverage is a “must” for professionals like doctors and lawyers; in fact, malpractice insurance is perhaps the most widely recognized type of professional liability insurance. But the fact is, anyone who provides a service to consumers should have this vitally important type of insurance coverage to protect against legal claims of negligence or failure to perform.
Service industries like insurance that rely on copious amounts of client-derived data are in special need of protection against claims of failure to perform. Because information can vary significantly – and often subtly – from one client to the next, the chance of making a mistake – especially tiny ones resulting from unintentional oversight – is relatively high. Let's face it: Everyone makes mistakes, but not all mistakes are easily forgiven, especially when a mistake winds up costing someone money.
E&O coverage ensures you're protected in the event you turn out to be “human” and wind up making an error when handling a policy for one of your clients.
Of course, not all claims of negligence and failure to perform are rock solid, and sometimes, battling it out in court is the best route. But when a claim is small, even if it's frivolous, a court battle can result in considerable costs, both in terms of money and in terms of your reputation. Professional liability coverage can help in those cases, too, by enabling you to settle small claims without the need for costly and protracted litigation, so you can focus on more important goals and objectives.
At the American Agents Alliance, we specialize in E&O insurance coverage for insurance agents, providing the most comprehensive coverage options at the most competitive costs. Plus, we offer many other benefits, like continuing education courses, an annual conference, business discounts and even a free legal hotline for your own peace of mind. To learn more, browse our site, then give us a call at (866) 497-9222 or send us an email using our online form.
Our E&O Program Advantages:
- "A" Rated, admitted carrier
- Special rates for new agents - as low as $650
- Cyber liability extension included at no additional cost
- Limited EPLI coverage available
- Affordable premiums
- Convenient monthly payment options
- No aggregate program limit
- No charge for support staff
- 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
- Deductible waiver endorsement available after participating in program for 3 years
- Discount for agencies with 50% or more staff who maintain CIC designations