Errors And Omissions Insurance
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Statistically one out of every seven insurance brokers will file an Errors and Omissions claim at some point in their career. Currently insurance agents rank fourth among professions in number of lawsuits being filed against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).
An agent that is not adequately covered by EO Insurance For Insurance Agents is exposed to the possibility of being held fully responsible for the damages if a lawsuit is filed against them.
Insurance agents provide essential services to individuals, families, and businesses by helping them to locate and purchase adequate insurance protection. Most insurance agents, however, do not realize the exposure that is involved with this industry. Recommendations that you provide for insurance, either to purchase or bypass, may return as a liability if a client decides that you were wrong in your advice. Clients facing a major problem with an insurance policy, or lack thereof, may file a claim against you, threatening your career, income and possessions.
== Reasons For EO Insurance For Insurance Agents ==
Errors and omissions insurance for insurance agencies protects the agent from any claim, real or perceived, that arose from their personal involvement in the sale or servicing of an insurance product. EO Insurance For Insurance Agents tailor made to serve the small individual agents to large agencies selling property and casualty insurance coverage. With your policy you get 24 hour protection from lawsuits arising 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.”
Agents with inadequate E&O coverage stand to lose their homes, their businesses and their collectible personal assets.
== Insurance Agents Exposure To Risk May Be Greater Than They Realize ==
“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 Adequately Protected? ==
There are certain precautions you should take regarding your livelihood . In the first place, your profession as an insurance agent has a lot to do with the care you render your customers. When carrying out your obligations 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 an insurance coverage, you may end up bearing the full cost of the litigation process. However, you can protect yourself with E & O insurance for insurance agents. This is a professional liability insurance instrument tailor made to protect insurance agents from whatever errors, mistakes or omission they may commit in the course of day to day business.
Errors, mistakes or omissions can occur anytime while you work as an insurance agent. It can come up as a breach or negligence of a contract agreement. When such an error occurs, litigation may be initiated against you. If you’re adequately covered by E&O insurance for insurance agents, you’re protected from bearing the full cost of the defense for the lawsuit that may be filed against you as a result of the error or mistake committed or is alleged.
== Gaps In EO Insurance Coverage ==
Gaps in coverage are common in EO insurance. A modest survey suggested that many agents are unaware of what a gap in coverage really is or its harsh consequences. For example several insurance agents incorrectly believed since they were not writing business during specific months, they did not need continuous coverage.
EO coverage for agents is professional liability errors omissions insurance designed to handle the risk exposure of property and casualty insurance agents brokers and agencies.
Property and casualty insurance agents have very specific risk exposures that increase with the volume of business they write. We know E&O insurance coverage for property and casualty insurance agents and analyze your specific situation to ensure there are no gaps in your professional liability insurance coverage.
We understand that agents are seeking to cut expenses without sacrificing 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 generic policy, you may be opening yourself to more risks and liability. Have our team review your EO insurance policy, and we’ll analyze every angle to protect you and the agency you've built.
Since we have a large book of insurance agents E&O, we have excellent relationships with our markets. As your advocate, we can often negotiate better terms with the insurance carriers and offer superior EO coverage options.
Errors And Omissions Insurance www.fresnocitycollege.edu/redirect.aspx?url=http://errors...