The two main decisions an independent insurance agent needs to make are:
- What markets do I represent?
- What Professional Liability Insurance (Insurance Agent’s Errors and Omissions) policy do I buy?
It’s obvious that an agency must have access to markets who will provide valuable coverage options that can be efficiently quoted for prospects. Just as valuable for an agent is adequate business insurance for the agency. That’s why there is specialized insurance for independent agents.
Agents don’t like to think about Errors and Omissions Insurance
Insurance Agent’s Professional Liability Insurance tends to be one of their largest expenses.
No one likes to admit they make errors, but we all do. The size of the claim often is a bigger factor than whether or not you will be sued, much more than real culpability. A large uncovered liability loss or fire will have attorneys searching for a deep pocket.
Larger agencies have realized that simply being involved in thousands of transactions a month almost guarantees a Professional Liability Insurance claim every few years.
Agencies Can Be Sued For Almost Anything
In most cases, unless they really did make a mistake in carrying out their duties, or failed to perform their duties to a level of community standards, they won’t be involved in a paid claim other than the legal expense to defend.
The pricing of your Insurance Agent’s Errors and Omissions (E&O) policy depends on your years of professional experience, size of your agency, kinds of business you write, your loss experience, limit of liability, coverage, deductible, financial quality of your companies, and other factors.
You should purchase the highest limits you can realistically afford. If you’re looking to save money, look toward a higher deductible.
The best defenses against Insurance Agent’s Errors and Omissions loss might be a warm smile coupled with careful office procedures. People sue because they’re mad or horribly injured.
When a claim is presented you want to be prepared. Just like an insured of your agency looks to your expertise to protect them, you should contact a professional who is trained in the nuances of an Insurance Agent’s Professional Liability Policy to help you.
Other Enhanced Insurance articles related to Professional Insurance:
Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.