Errors and omissions or E&O insurance can protect insurance agents from a number of financial risks, such as:
Here’s how it works and what you should know about getting insurance agent E&O insurance.
What is Agent Failure and Injury Insurance?
E&O insurance is an insurance policy that protects insurance agents if someone accuses them of making a mistake and sues the company or makes a claim. In general, failure and omission insurance are insurance policies with a claim, which means that at the time of making a claim, insurance must be in place so that the insurer can cover it. If your insurance cover expires, you will no longer be protected.
Does my insurance agency need E&O insurance?
In general, companies that provide services to customers for a fee should take out E&O insurance. Insurance brokers are often exposed to the following risks (and more) that E&O insurance can protect against:
Failure or failure to obtain cover. For example, you might forget to take out car insurance for a customer who later has an accident.
Recommendation of the wrong coverage to a customer. For example, your employee could tell a customer that property insurance would mitigate a risk if workers’ compensation insurance actually covers the risk.
Administrative errors in insurance certificates or other documents. Errors in documents required to meet insurance requirements can delay or interrupt insurance coverage.
Failure to assist a customer in resolving a claim on a policy. For example, an employee may fail to call back calls, fail to fill out paperwork, or incorrectly answer questions about a customer’s insurance claim, resulting in the insurer making less or no payment.
Misjudgment of the insurance risk on a customer’s property. This could lead to underinsurance of the customer, which could result in significant financial loss.
What is best for your company?
Answer a few questions and we will put you in touch with an insurance partner who can help you prepare an offer.
This is how insurance agents can take out E&O insurance
Here are some simple steps to follow when getting a failure and omission policy for your insurance agency.
Find out how much insurance you need. If you’re selling insurance on the side, you may not need as much coverage as a broker with 20 people. Some insurers offer policies that protect you on a per-event basis instead of requiring a monthly or annual commitment.
Get multiple quotes and compare insurance plans. There are three ways to get estimates from insurers: contact an insurance broker, shop through an online marketplace, or contact individual providers yourself.
Buy your insurance package and keep your policies up to date. Read the fine print in your policy so you know how and when you are covered.
Keep an eye on your reporting. You can set up calendar notifications to remind yourself when it is time to renew your insurance policy to make sure your coverage doesn’t accidentally expire.
How much does the E&O insurance insurance broker cost?
The price of failure and omission insurance can vary significantly depending on the insurance policy you choose, the amount of coverage you have, the size of your insurance agency, the number of people you employ, and your location.
If you sell insurance on the side, a fast online insurer like Next or biBERK Could make sense.
Check with an insurer whose policies you sell. If it’s good enough for your customers, shouldn’t it be good enough for you?
As with any major decision, there are a few quotes from different insurers to ensure that you are buying the best plan for your individual needs.
Find out how to quickly protect your business: