As an insurance agent or insurance agency principal, you have a much deeper-than-average knowledge of insurance and are constantly advising your own clients to protect themselves with an insurance policy. However, protecting yourself is just as important.
Consider the following tale:
A homeowner smelled something strange in her basement one day and upon the recommendation of a friend, she contacted a mold specialist to inspect her home. The inspector found mold throughout the basement, in the attic and in other parts of the house. The homeowner had to repair and replace several portions of the home. When the homeowner tried to file an insurance claim on the mold damage, she discovered that it was not covered. In this case, the homeowner sued the agent who sold her the policy—she claimed that the agent never made it clear that there were restrictions in place that prevented insurance from paying for the mold damage. In this case, the agent was liable for $18,000—the cost of the repairs to the home.
All of this resulted from the insurance agent’s failure to notify the homeowner that her policy excluded mold damage. It is unfortunate, but stories like this are more common than you may think. It is very important that insurance agents protect themselves by doing everything possible to share necessary information with their clients. After all, not only does this protect the agent, but it makes things easier on the insurance clients too. An important step you can take as an insurance agent is to review policy details with your client. Every time you sell a policy, make a change or if your client seems to have questions, take the time to go over the details. Despite doing this, even the most careful insurance agent can accidently omit a small, yet important, piece of information—or become confused by a new insurance product.
That is why E&O insurance for insurance agents is such a vital purchase. Errors and omissions insurance for insurance agents can be one of the most important purchases an agent makes. At the American Agents Alliance, we want to make the process of obtaining E&O insurance simple. We offer a no obligation quote and in many cases, we can enroll you instantly online. E&O insurance for P&C agents does not have to be expensive either. At the American Agents Alliance, we will go the extra mile to find you the best possible rate for your insurance agent errors and omissions policy. As insurance agents ourselves, we make the process of obtaining quality E&O insurance simple—giving you the coverage you need. Take a look at our E&O insurance program right here E&O insurance program and get started!