The threat of liability arising from professional errors by insurance agents in the current litigious society is a very real possibility. While at first glance, the idea that an insurance agent must be insured against risks of errors and omissions (E & O) that may occur in the business of providing insurance for others may seem like a hall of mirrors, reflecting endlessly ad infinitum, the truth is that a claim against an insurance broker is as real a possibility as claims against any other type of professional for alleged malpractice. For this reason, E & O insurance for insurance agents has become a growing specialty in the professional liability risk management arena.
What Could Go Wrong
When you have decided that you will not go further in your business without the coverage provided by E & O insurance for insurance agents, and begin to search the market for the plan that will suit your needs, you will need to do some deep thinking about the risks inherent in your particular work. You may be in need of liability coverage if your specialty in risk underwriting is in an area that is potentially more prone to claims, such as:
– Large retail agents
– Significant claims agents
– Specialists in ‘hard to place’ coverage
– Program managers
When you have found the company that will provide the coverage you need, the application is one of the most important parts of the process. It is critical at this point to provide complete and accurate answers to all questions. An error in reporting, even an innocent oversight, can put your coverage at risk. But be assured that you will never regret the decision to be covered, knowing that your coverage is as complete as possible will contribute to the stability of your company as you grow and evolve into the future.