As an insurance agent, having errors and omissions (E&O) insurance is crucial for protecting yourself against potential claims from clients. Despite your best intentions and industry knowledge, you may eventually face accusations of providing improper advice or making mistakes. If you don’t have E&O insurance in these situations, a client can file a claim against you, potentially incurring significant consequences.
Why Is Coverage Necessary? 
As an insurance agent, your clients entrust you with their financial interests and peace of mind, believing that your knowledge and experience will procure sufficient coverage. However, if you’re accused of committing an error from which a client suffers financial losses, the following repercussions could ensue:
- Without E&O insurance, you are personally responsible for all legal defense costs. Even if the claim is unfounded, the expenses associated with hiring an attorney, court fees and other legal costs can quickly add up.
- If the court rules in favor of the client, you may be required to pay for any settlements or judgments. This financial burden can be devastating, potentially leading to significant personal financial loss or even bankruptcy. E&O insurance typically covers these costs, providing a safety net that financially protects your personal and professional assets.
- The absence of E&O insurance can damage your professional reputation. Clients expect their insurance agents to be adequately insured, and the lack of E&O coverage may lead to a loss of trust and credibility. This can result in a decline in your client base and negatively impact your business growth.
- Dealing with a claim without E&O insurance can be incredibly stressful and time-consuming. The process of defending yourself, gathering evidence and navigating the legal system can divert your attention from your core business activities, affecting your productivity, revenue and overall business performance.
How to Get E&O Insurance Near Me
At U.S. E&O Brokers in Houston, Texas, we’re prepared to help you secure the proper coverage. Contact us today to learn more or compare quotes for personalized policies.
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.