CALL US TODAY | (800) 460-6424
Real Estate
Lawyers
Cyber Liability
Commercial Crime
Master Policy Programs

image of happy insurance agentsRunning a business is not easy. There is always a chance that something could go wrong, or that someone could make a mistake. In these events, a business becomes a risk to its own finances and its customers.

Insurance agents have a responsibility to offer the correct services to their clients. If an agent issues a policy incorrectly, it could threaten the the safety of a client. This could have negative financial ramifications on the company.

Insurance agents themselves need insurance. Errors & Omissions (E&O) insurance can help companies protect risks in case of mistakes.

What is E&O Coverage?

Errors & Omissions coverage means to help employers in case they make professional mistakes or recommend bad services.

E&O coverage can help you pay for claims of negligence, which means giving the incorrect services. It can also help in case those services personally harm a client. Also, it might help a business when errors bring harm to the establishment itself.

There is always a chance that insurance companies could offer bad services. An agent could incorrectly issue a policy, or improperly manage a client’s payments. Doing so could harm the clients. The clients could then request damages from the company because of this mismanagement. In these cases, E&O coverage could help you cover legal costs or other compensation you might owe a harmed client.

Extra Steps to Protect Your Business

Intentionally neglecting your operations could put you at a liability risk for your E&O insurance provider. As an agent, you should do everything you can to prevent E&O insurance risks within your agency.

Taking some of these steps can help you build a better, more trustworthy brand.

  • Ensure that you only hire professional, licensed insurance agents. Maintaining a professional staff means you can cut the risks of mistakes. Most states require insurance agents to carry licensing to issue policies. Therefore, make sure agents have all proper qualifications.
  • Require proper training in your staff. Make sure that they can properly adapt to the changing insurance industry as needed. Many insurance companies periodically review staff performance.
  • Keep your office aware of any changes in state insurance requirements and regulations. Doing so will help ensure that you always issue policies correctly.
  • Stay abreast of developments within the insurance industry. Companies often change policy practices. Ensure that you and your staff follows all changes to insurance policy offerings.
  • Maintain transparent business practices. Have excellent oversight of your finances, business practices, and staff conduct.

An insurance agency should take advantage of E&O insurance to better protect its own risks in case of mistakes. However, the business should do everything it can to reduce E&O risks in the first place.

U.S. E&O Brokers can help you get an E&O insurance policy that best meets your own needs. Talk to one of our agents to get a fast, free insurance quote. Call us at (800) 460-6424 for more information.

Posted 2:28 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
LinkedIn
Google+
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
© Copyright. All rights reserved.
Powered by Insurance Website Builder