A Word From Our Sponsor On What Is Errors & Omissions Insurance For Insurance Agents

Errors & omissions insurance for insurance agents is a business liability policy that covers insurance professionals for defense costs and damage awards in the event of a lawsuit. It specifically covers you or your agency in the event a mistake is made that causes financial harm to another. This type of insurance will help to protect an agency from incurring the full cost of defending itself and for the possible damage awards.
Your agency should consider buying errors & omissions insurance for insurance agents because lawsuits are not just about negligence; they are about an allegation of negligence. The business environment that an insurance agency has to function in today has become very litigious. It sometimes seems like people are looking for a reason to sue. They see it as a way to become financially independent. There are many innocent parties brought into lawsuits because they are one part of a transaction. The alleged error or omission doesn’t have to be made by your agency, but defending the reputation of your agency, whether frivolous or not, can still cost your agency thousands of dollars.
By carrying errors & omissions insurance for insurance agents coverage you are transferring a portion of the legal expenditure to the insurance carrier if a lawsuit should occur. By planning ahead you can reduce the financial impact on your business.