You've decided to get E&O insurance. This will ease your mind, and if you do go to court because of one of your employees' errors or omissions, it can save your insurance business as well. However, not all E&O insurance providers are the same. What should you look for in an E&O insurance provider to make sure that you're getting the quality service that you need- just in case you need it?
1. The Product and Costs Should Be Clear
What do you get when you sign up for E&O insurance through your insurance provider? You need to know what you are getting so that you can fill in any gaps that might exist. For instance, does your insurance provider cover everyone in your business, including support staff? What is the deductible, and is it affordable for your business? Is digital or cyber liability included? Look for insurance that covers as wide a scope as possible within the confines of that single insurance policy.
2. Look for Thoughtful Discounts
You don't want to go with the bargain insurance automatically, because it won't always give you what you want and need for your insurance agency. However, you should look for an insurance provider with thoughtful, strategic discounts. For example, your provider could give discounts for:
New agents, so that it's easier to purchase E&O insurance when you are starting out
Agencies with a certain percentage of staff with designations and credentials such as the CIC designation
E&O coverage for areas such as cyber liability at no extra cost
A deductible waiver after ongoing program participation for a specific length of time
Look for a carrier that has different payment options as well, so you don't need to pay for all of your insurance for the entire year at the same time.
3. Look at the Limits
When will your E&O insurance stop helping your business? Every insurance product has exclusions and limits. A high quality provider may have more generous limits, but they will also be perfectly clear about where these limits stop. This helps your company understand your insurance and prepare. For instance, American Agents Alliance E&O insurance has:
A deductible that applies to damages only
A cap of 1 million for defense costs outside the limit of liability
Limits of up to 3 million per claim or 5 million aggregate
4. Your Insurance Provider Should Understand and Respond to Your Questions
When you're looking for an E&O insurance provider, make sure that your provider is at ease with your questions. That provider should have a lot of experience working with insurance agencies who need E&O insurance and understand your questions. They should also have a quick response time, so that you know that when you have a question, concern, or a need to use those services, you will be served quickly rather than waiting and worrying.
American Agents Alliance is here to connect your insurance agency with the resources and people that can help you become a stronger insurance agency. This includes providing discounted E&O insurance. Are you looking for support as you grow your insurance agency? Contact us today.