Beyond offering policies and client support, an insurance agency should also be accountable for the advice provided. Mistakes can happen even with years of experience, and when they do, they can be costly. Professional liability insurance can help your agency manage these risks and keep your business moving forward.

How Can Professional Liability Insurance Help My Insurance Agency?

Professional liability insurance, also called errors and omissions (E&O) insurance, may respond when a client claims your agency made a professional mistake. This might involve giving incorrect advice, failing to disclose important information or missing a deadline that impacts a policy or claim.

If a client believes they suffered a financial loss because of your actions, they may take legal action. Defense costs and legal fees can be significant even if the claim lacks merit. Professional liability insurance may cover these costs, so your agency doesn’t have to absorb them out of pocket.

What Does Professional Liability Insurance Cover?

Professional liability insurance focuses on claims related to professional services and advice. It may provide financial aid when clients allege financial harm due to mistakes or oversights in your work. Standard policies often cover the following:

• Legal defense costs

• Court fees

• Settlements and judgments

• Claims of negligence

• Allegations of misrepresentation

• Accusations of omission

• Breach of duty claims

• Failure to meet industry standards

Professional liability insurance doesn’t cover everything. It won’t apply to intentional wrongdoing, criminal acts or general business risks like property damage or employee injuries. These would fall under other types of insurance.

Secure a Policy Today

Obtain financial security with professional liability insurance from U.S. E & O Brokers. Insurance agencies in Houston, Texas, and nearby communities trust us for reliable insurance plans. Contact us today to explore your options.

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.