Professional Liability Policy For Agencies And Brokers Or Agents

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Professional Liability Policy For Agencies And Brokers Or Agents
Statistics show one in seven insurance agencies will submit an EO claim at some point during their career. Today insurance agents are 4th among professions for claims initiated against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).

A broker agent not properly insured by Insurance Business Coverage risks the possibility of being held fully responsible for the damages if a claim is filed against them.

Insurance agent brokers render vital services to customers through guiding them to find and obtain complete insurance. Many independent agents, though, rarely consider the risk involved with the insurance profession. Guidance that you suggest for policies, either to obtain or turn down , could come back as a law suite in the event a customer claims that you were faulty in your judgment. Customers facing a financial loss regarding insurance coverage, or miscoverage, could lodge a legal action naming you, endangering your business, livelihood and property.

== Reasons For Insurance Business Coverage ==

Errors and omissions insurance for property and casualty insurance agents covers the agency against any allegation, real or perceived, arising from their involvement in the sale or servicing of an insurance product. Insurance Business Coverage tailored to serve the small individual agents to large agencies delivering property and casualty insurance. Get 24 hour protection against claims stemming from negligent acts, errors or omissions arising during your activities as an individual agent or broker. 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.”

Brokers without E and O insurance stand to lose their homes, their agencies and their possessions .

== Insurance Brokers Risk Exposure Is 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 $1,000,000 limit isn’t adequate for agents in these litigious times.”

Henderson’s comments are especially true for agents in California, considered the litigation capital of the country. Given the rate of litigation combined with the high valuations of commercial and residential properties, carrying only $1,000,000 in limits is shortsighted, Henderson says. Defense costs alone could run from $100k to $500k depending on the complexity of a case, he noted.

== As An Agent Are You Properly Insured? ==

There are precautions you need to take concerning your profession. In the first place, your career as an insurance broker has a lot to do with the care you provide your insureds. In the course of carrying out your duties as an agent, you may commit an error or mistake. Your clients may decide to recover damages in court. If you’re not adequately protected by E&O insurance policy, you may end up bearing the full cost of the litigation process. You should help yourself with E&O insurance for property and casualty insurance agents. This is a business liability insurance device created to protect insurance agents from whatever errors, mistakes or omission they may commit while discharging their duties.

Mistakes may happen during your work as a P&C insurance agent. It may occur as a breach of a client agreement. When ever an mistake happens, a claim may be filed against your agency. When you are properly protected by EO coverage for insurance agents and brokers, you’re shielded from shouldering the complete costs of attorneys for any litigation that is leveled against you and your agency because of any error or omission that happened or allegedly occurred.

== Faulty Errors And Omissions Insurance Protection ==

Gaps in protection are common in Errors And Omissions coverage. Surveys demonstrated that most professionals are not fully aware of what a gap in insurance really is or the regrettable outcome. For example several insurance professionals wrongly assumed while they were not writing policies during specific months, they did not need continuous coverage.

Errors and omissions policies for P&C insurance agents is professional liability E&O insurance specifically designed for the exposures of insurance agents brokers and agencies.

P&C insurance agents have very unique exposures that increase with the volume of policies they do. We understand errors and omissions insurance coverage for P&C insurance agents and analyze your specific situation to ensure there are no weaknesses in your professional liability insurance coverage.

We are keenly aware that brokers are trying to reduce overhead without cutting coverage. That’s where we come in. We thoroughly review your business to develop a solution specific for you. This often eliminates purchasing unneeded coverage and replacing it with coverage that you do.

If you're a successful broker and just bought a cookie cutter policy, you could be open to more exposure and liability. Have our team review your E and O insurance coverage, and we’ll review every angle and help protect you and the business you've built.

Because we own a large book of business, we have favorable working relationships with our underwriters. As your broker, we can often find more favorable policy terms with carriers and provide better Errors and Omissions protection solutions.

Error And Omission Insurance Quote For Insurance Agencies Brokers or Agents