As an insurance agency, your business can play an integral role in the ongoing financial security and prosperity of its clients and community. However, while you may strive to provide the best available coverage to those in need, you must accept that there may be times when you come up short. Despite your best efforts and ideal intentions, mistakes can happen. Given the financial stakes involved in offering insurance, your agency should be sure to secure the right coverage for itself.
What Is E&O Insurance? 
Errors and omissions (E&O) insurance, or professional liability insurance, is a staple of many businesses’ risk management and loss control measures. These policies can help manage legal expenses and other financial implications if a client or customer accuses you of providing services or professional advice that they claim led to their own losses.
Why Does Your Agency Need Coverage?
Mistakes are inevitable. While this sentiment may be unpleasant and not something your business would care to admit publicly, it’s an inherent truth you must accept to ensure you can recover from errors and accidents. Consider the following situations and how the right E&O coverage might make all the difference in managing them:
- If a client alleges that the policies you recommended were insufficient to their needs and left them underinsured, they may sue you for inaccurate advice.
- A client may also accuse your business of misrepresentation, negligence or omissions, such as if they claim coverage was not adequately explained.
- Insurers and clients alike could level accusations requiring an E&O claim if they allege that your agency failed to communicate information about claims or other important correspondence promptly.
In addition to protecting your agency’s financial interests, having E&O insurance can boost your business’s reputation and provide peace of mind to clients and carriers with whom you work.
We’re Here to Help
Contact U.S. E&O Brokers today to learn more about coverage options or to get a personalized quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.