Insurance agents E&O coverage protects insurance firms against lawsuits that allege errors or mistakes. Insurance errors can cost clients money. When this happens, usually lawsuits are filed against the firm. For mistakes, E&O coverage is there. Before you turn away from E&O coverage, you need to debunk a couple of the myths.
You Won’t Make Mistakes
A lot of professionals want to believe that they will not make any mistakes. While it’s great to be confident, you also want to be realistic. Everyone makes mistakes. Everyone has off days or days where they forget some type of paperwork or give poor advice. You need to be protected for those instances.
You Provide Advice
One misconception is that if insurance agents do not need errors and omissions because a lot of what they do is use expertise to choose insurance options. An insurance agent leads a client towards decisions that can protect his or herself or business against risks. As an insurance agent, if your client opts out of coverage and later on has to deal with those consequences, he or she may point to you as liable because of your advice. This is where you need E&O coverage.
Insurance agents E&O coverage protects agents against lawsuits for any sort of errors or omissions that take place. Mistakes happen in every industry and can happen in insurance firms all of the time.