Business insurance can be held in high regard as a defense against liability claims, but its protection not a blanket coverage for the professionals who may be employed with a company. Lawsuits commonly arise because of something that happened, but in other cases, they are the result of something that failed to occur. These situations need additional errors and omissions insurance (E and O), and many different professionals could benefit from the extra coverage. There are several reasons why it is necessary to obtain E and O for insurance agents.
Errors and omissions insurance financially protects an individual or company from the full responsibility of legal costs arising from a claim.
E&O policies also assist with the financial costs of damages potentially awarded following a lawsuit.
As an insurance agent, the potential for a negligence claim is serious, as a mistake could create an alleged failure to execute on the part of the agent or financial loss may result as an error or omission in product or services offered by the company.
If you are in the market for E and O for insurance agents, look for a company who is well-rated and the industry with coverage services beyond the standard limits. Remember, you get what you pay for, and this one coverage that shouldn’t be ignored.