Statistically one out of seven insurance agencies will report an EO claim in their career. Insurance agents are 4th among professions in number of claims filed against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).
An insurance agent not properly protected by Professional Liability Coverage Cost California is exposed to the possibility of being held fully responsible for the damages if a claim is filed against them.
Insurance agencies provide essential services to clients by advising them to find and acquire proper protection. Many independent agents, however, rarely consider the risk involved with this industry. Recommendations that you provide for insurance, either to purchase or decline, can return as a legal claim when a customer feels that you were mistaken in your guidance. Clients facing a major problem with insurance coverage, or miscoverage, may lodge a claim against you, threatening your agency, livelihood and property.
Reasons For EO Insurance For Insurance Agents
E&O insurance for insurance agencies protects the broker against any claim, real or perceived, that arose from their personal involvement in the sale or servicing of an insurance product. reference tailored to serve the small individual agents to large agencies selling insurance. Get 24 hour protection against claims as a result of negligent acts, errors or omissions arising from your activities as an individual agent or broker or agency. Protection is available for you as an agent or broker and includes your non-licensed staff.
“We’re in an increasingly litigious environment,” says Claire Wilkinson, vice president-global issues, at the Insurance Information Institute, in New York. “There’s definitely an uptick in the number of agents buying insurance, in part because of the litigious environment. It’s essential for them to have adequate coverage.”
“At this agency, we wouldn't think of operating without suitable coverage,” says Jim Armitage, vice president of multi-lines agency Arroyo Insurance Services, in suburban Los Angeles. “In this litigious climate, people sue at the drop of a hat, and you need to have insurance protection.”
“We wouldn't even dream of doing that,” said Bernstein, vice president of TLB Insurance Services. “The risk is horrendous; it’s hard to believe anybody would operate in the insurance profession without suitable coverage.”
“Even if you could get away with it,” warns Mann of Fireman’s Fund, “it’s not worth it because you would at the very least lose your company appointment. But beyond that, you could lose everything including your house and your business if you get sued and have no E&O protection.”
“Litigation from hurricane, flood and other weather-related claims will clog up insurance company claims offices and courts on a long-term basis. Katrina claim cases will go on for years and years. It’s a flood of litigation, it’s here to stay and it’s only going to get bigger.”
Broker agents without professional liability coverage stand to lose their homes, their livelihoods and their possessions .
Insurance Agents Risk May Be Higher Than They Believe
“Agents need to understand their exposures might be much higher than they think they are. So they should buy as high a limit as they can afford. A $1 million limit isn’t adequate for agents in these litigious times.”
Henderson’s comments are especially true for brokers in California, considered the litigation capital of the US. Given the rate of lawsuits in combination with high values of commercial and residential properties, carrying only $1,000,000 in limits is shortsighted, Henderson says. Defense costs alone could run from $100,000 to $500,000 depending on the complexity of a case, he noted.
Is Your Agency Adequately Insured?
There are precautions you need to take in dealing with your livelihood . Your profession as an agent has a lot to do with the care you provide your insureds. When carrying out your duties as an agent, you may commit an error or mistake. Your customers may decide to seek justice in court. If you’re not adequately protected by E&O insurance coverage, you could end up paying the full cost of litigation. You should help yourself with E & O insurance for property and casualty insurance agents. This is a business liability insurance device designed to cover insurance agencies from whatever errors, mistakes or omission that may occur in the course of day to day business.
Mistakes happen anytime while you work as an insurance agent. It may happen as a breach or negligence of a contract agreement. When such an omission occurs, litigation may be lodged against your agency. If you’re adequately protected by errors and omissions insurance for insurance agents and brokers, you’re shielded from financing the complete costs of legal defense for any litigation that is filed against your agency resulting from the error or omission that occurred or is alleged.
Gaps In E and O Insurance Protection
Gaps in protection are common in Errors And Omissions policies. Surveys suggested that most professionals are lack understanding in what a gap in insurance really is or its regrettable consequences. For example several insurance professionals incorrectly believed since they were not writing policies during specific months, they did not need continuous coverage.
E and O policies for insurance agents is professional liability errors omissions insurance specifically designed for the exposures of P&C agents brokers and agencies.
Property and casualty insurance agents have very unique exposures that escalates with the volume of business they sell. We understand errors and omissions insurance coverage for P&C insurance agents and analyze your specific circumstances to ensure there are no gaps in your liability coverage. Omissions Insurance Rate
We understand that agencies are striving to reduce overhead without cutting protection. That’s where we shine. We thoroughly analyze your agency to create a solution tailored for your needs. This often eliminates purchasing inadequate coverage and replacing it with the insurance you actually need.
If you're a successful broker agent but just purchased general coverage, you could be opening yourself to more risks and liability. Have us review your E and O insurance coverage, and we’ll review every angle and help protect you and the agency you've built.
Since we have signed a large book of insurance agency business and Insurance Agent E&O Insurance Quote Southern California , we have favorable relations with our carriers. As your agent, we may be able to find better terms with carriers and offer more favorable E and O insurance coverage options.
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