subject: The 411 on Errors & Omissions Insurance for Insurance Agents [print this page] The 411 on Errors & Omissions Insurance for Insurance Agents
As an insurance professional, you do business with a lot of people every single day. And every client that you talk to needs a personal attention, knowledge and precise information regardless whether you are just reviewing a present policy or quoting a newly referred prospect. And a single mistake in any information, though it rarely happens, may charge your policy a large quantity of money. Due to this risk of making small mistakes which would cost a large amount of funds from the company, it is necessary that all insurance agent professionals have e&o insurance. For insurance agents, this is a particular professional liability policy protects you from any financial loss caused by an accidental mistake. And believe it or not, accidents happens because we're only human.
Regardless if you're a captive agent or a self-employed contractor, every insurance agent must have an errors and omissions insurance. While most company agents hold a coverage of professional liability required by the insurance carrier they are being contracted, there are also certain insurance agencies that don't extend the same benefit to their insurance agents. The truth is that it is essential to guard both you and your clients' best interests regardless of your contract conditions. In that way, significant financial losses, which might result from advising the wrong kind of policy, are prevented. So while helping your clients in keeping their financial security, you must also protect yours. If you don't have a little foresight, you may end up making expensive mistakes.
Errors & omissions insurance for insurance agents, like any other errors & omissions policy, will protect financial cost to a customer which results from professional advice of the insurance agent because of carelessness or negligence. The quantity funded will be regulated by the liability limit mentioned on the contracts which includes both a per claim limit and an aggregate limit annually. The claim will be declined if the agent surpasses the yearly aggregate limit of any agreed policy term. The liability limit covers fees for legal defense, court costs, and even judgments and settlements done against the person insured if the action was seen as their fault. Aside from this, legal defense, in any case of fault when fulfilling the deductible, is covered.
You, as an insurance agent, should understand the significance of having a complete business insurance set. Take your personal advice, and guard yourself from legitimate along with frivolous claims. In other words, walk your talk. In this world full of litigation, you'll be amazed with what your customers may claim just to get a buck. Even if you provide exceptional service, this can happen to the very best of insurance agents. Never pay legal charges from your pocket and get errors & omissions insurance for insurance agents today.
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