How Does Insurance Agent E & O Help Businesses?

A client may sue you if you are accused of professional negligence, mistakes, or failing to fulfill a promise linked to your insurance services.

As an insurance professional, you understand the devastation that a court struggle can cause. Fortunately, errors and omissions insurance may protect your company from such lawsuits by covering legal costs. Continue reading to know more about the topic.

Benefits of E&O Insurance to Insurance Agents

Insurance Agents need coverage, too. Here are the benefits you may get when you purchase an E&O insurance policy:

1. Attorney's Fees Insurance professionals are not immune to professional negligence lawsuits. If a customer alleges that your counsel resulted in insufficient coverage, you may face a lawsuit. With E&O insurance, your insurer may pay your legal expenditures, including the cost of employing an attorney. And the attorney's fees may range from $3,000 to $150,000, which may be too costly for your firm. It may also cover administrative charges for putting together your defense, such as paying office managers or court reporters.

2. Court Expenses Mistakes happen, and insurance professionals might face legal action as a result. Suppose a client files a case against you for a mistake or oversight, then you might suffer a big financial loss. However, with E&O insurance, your insurer may pay for court expenses, such as the cost of reserving a courtroom or paying for expert testimony.

3. Settlements and Judgments Fees When people acquire your service, they always have high expectations. As a result, if your company fails to execute its professional obligations, you may face a lawsuit because you are wasting their money and their time. The good thing is that your insurance company may assist you. They may cover the settlement and judgment fees, ranging from thousands to millions.

Most Common Exclusions in an Insurance Agent's E&O Policy

Of course, there are errors and mistakes that your insurance company may not cover. Some of these are:

1. Injuries, property damage, and blunders in advertising

2. Intentional misbehavior, as well as unlawful and deceptive behavior

3. Ancillary services

4. Employees who have been hurt or become ill as a result of their job

5. Data breaches create cyber liabilities

6. Harassment or discrimination in the workplace

Conclusion

Insurance agents also need insurance since they are also vulnerable to errors and mistakes. Fortunately, errors and omissions insurance may help protect them against financial loss and tainted reputation.

At Second Western Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.