E&O Policy For Insurance Agents

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E&O Policy For Insurance Agents
Statistically one out of seven agents will submit an E&O claim during their career. In fact, insurance agents rank fourth among professions for legal claims initiated against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).

An insurance agency that is not adequately insured by EO For Insurance Agents is exposed to the possibility of being held fully responsible for the damages if a lawsuit is filed against them.

Insurance brokers provide essential services to customers through helping them to locate and acquire complete insurance protection. Many brokers, however, rarely think about the exposure that is involved with property and casualty insurance sales. Guidance that you suggest for policies, either to obtain or skip, could return as a EO claim when a client claims that you were faulty in your direction. Clients facing a major problem with an insurance policy, or lack thereof, could file a legal action against you, threatening your business, income and possessions.

== Reasons For EO For Insurance Agents ==

E&O insurance for insurance agencies protects the agency from any claim, real or perceived, that arose from their personal involvement in the sale or servicing of an insurance product. EO For Insurance Agents tailor made to serve the small individual agents to large agencies selling insurance. Get 24 hour protection from lawsuits stemming from negligent acts, errors or omissions arising from your activities as an individual agent or broker. Coverage is available for you as a general agent or broker and includes your non-licensed staff.

“We’re in an increasingly litigious environment,” says Claire Wilkinson, vice president-global issues, at the Insurance Information Institute, in New York. “There’s definitely an uptick in the number of agents buying insurance, in part because of the litigious environment. It’s essential for them to have adequate coverage.”

“At this agency, we wouldn't think of operating without suitable coverage,” says Jim Armitage, vice president of multi-lines agency Arroyo Insurance Services, in suburban Los Angeles. “In this litigious climate, people sue at the drop of a hat, and you need to have insurance protection.”

“We wouldn't even dream of doing that,” said Bernstein, vice president of TLB Insurance Services. “The risk is horrendous; it’s hard to believe anybody would operate in the insurance profession without suitable coverage.”

“Even if you could get away with it,” warns Mann of Fireman’s Fund, “it’s not worth it because you would at the very least lose your company appointment. But beyond that, you could lose everything including your house and your business if you get sued and have no E&O protection.”

“Litigation from hurricane, flood and other weather-related claims will clog up insurance company claims offices and courts on a long-term basis. Katrina claim cases will go on for years and years. It’s a flood of litigation, it’s here to stay and it’s only going to get bigger.”

Agency owners with inadequate E & O coverage stand to lose their homes, their agencies and their assets.

== Insurance Agencies Risk Exposure May Be Greater Than They Believe ==

“Agents need to understand their exposures might be much higher than they think they are. So they should buy as high a limit as they can afford. A $1 million limit isn’t adequate for agents in these litigious times.”

Henderson’s comments are especially true for agents in California, which is considered the litigation capital of the country. Given the rate of lawsuits combined with the high valuations of commercial and residential properties, carrying only $1 million in limits is shortsighted, Henderson says. Defense costs alone could run from $100,000 to $500,000 depending on the complexity of a case, he noted.

== Are You Properly Insured? ==

There are steps you should take with regard to your business. Your profession as an agent has a lot to do with the care you render your insureds. When carrying out your responsibilities as an agent, you may commit an error or mistake. Your customers may decide to seek justice in court. If you’re not properly protected by EO insurance coverage, you may end up bearing the full cost of the litigation process. You should protect yourself with EO insurance for insurance agents. This is a professional liability insurance instrument created to protect insurance agents from whatever errors, mistakes or omission they may commit in the course of day to day business.

Mistakes and errors may happen during your work as a P&C insurance agent. It can occur as a breach or negligence of a hand shake agreement. When such an error or omission occurs, a claim may be lodged against your agency. If you’re adequately covered by E&O insurance for P&C insurance agents, you’re protected from financing the complete cost of attorneys for the litigation that may be leveled against you and your agency resulting from the mistake that happened or is alleged.

== Incomplete EO Insurance Coverage ==

Gaps in coverage are common in EO coverage. A modest survey demonstrated that many agents are mistaken in what a gap in coverage really is or its regrettable outcome. For example several insurance brokers wrongly assumed while they were not writing business during specific months, they did not need continuous coverage.

EO policies for property and casualty insurance agents is professional liability E&O insurance designed to handle the risks of P&C agents brokers and agencies.

P&C insurance agents have very specific exposures that increase with the volume of policies they do. We know E&O insurance coverage for P&C insurance agents and analyze your specific situation to ensure there are no weaknesses in your professional liability insurance coverage.

We understand that brokers are striving to reduce overhead without cutting protection. That’s where we come in. We completely analyze your agency and develop a solution specific for you. This often eliminates purchasing coverage you don’t need and replacing it with coverage that you do.

If you’re a successful professional but only purchased a cookie cutter policy, you may be opening yourself to more risks and liability. Have our team review your EO insurance, and we’ll analyze every angle to protect you and the agency you've built.

Since we own a large book of E and O coverage for insurance agents, we have excellent relationships with our markets. As your broker, we can often find better policy terms with the insurance carriers while offering superior EO protection options.

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