While most insurance agencies carry a policy that will protect their agents from litigation for their actions, clients often, due to personal concerns, require professionals that they do business with to carry errors and omissions (E&O) insurance. The fact is, without coverage, an agent may risk losing a lawsuit along with possible opportunities to garner new clients.
This policy, available through errors and omissions insurance brokers, is specifically designed to offer protection to agency professionals for an array of emerging exposures they may face. In addition, coverage can protect your firm against losses resulting from negligence, or errors and omissions in the performance of professional services. The E&O policy can also be tailored to fit the business needs of agencies both big and small.
Insurers also provide comprehensive risk management planning
In addition to the coverage being purchased, you’ll also benefit from assistance in proactively mitigating many existing liability exposures. The majority of lawsuits associated with insurance agents have risen out of allegations that agents failed to properly instruct clients on the type of coverage that they may require, or accusations that they failed to provide accurate quotes for the amount of coverage needed.
Often a lawsuit is filed because the agent or seller accidentally left out information, regardless of any good intentions they may have had on their part. An agent concerned about their inability to close a deal may wind up failing to provide proper services or products intended to protect their clients’ interests. If so, then they are doing a disservice to that client. The client often makes a decision based on information provided which, if proved to be erroneous, means they may be purchasing insurance that they may have otherwise declined.
Agents should make it a point to go over all options carefully and under no circumstances hide information that may be crucial to the decision-making process. Every agent has an obligation to be honest and forthright toward the buyer and this includes the duty to disclose any and all facts.
Being considered an expert in the field of insurance services is an honor that shouldn’t be taken lightly. Most prospective clients appreciate this, so it’s important for the agent to stand by the information they provide in order to sell coverage that truly fits the client’s needs. Insurance agents should obtain a policy from errors and omissions insurance brokers to deal with allegations or issues of failure to disclose pertinent information when they arise.