Call Us (800) 460-6424 ☰ ˟
Information and Resources On The COVID-19 Pandemic: Click Here
Logo
(800) 460-6424
  • Home
  • Get A Quote
    • Agents E&O Quick Application
    • Commercial Crime Application
    • Commercial Crime Quick Application
    • Cyber Liability Application
    • Director's & Officer's Application
    • Director's & Officer's Quick Application
    • Employment Practices Liability Application
    • MGA/Wholesaler Application
    • Real Estate Professional Liability
  • Policy Review
  • Insurance for Your Agency
    • Errors & Omissions
    • D & O Insurance
    • Cyber Liability Insurance
    • Commercial Crime
    • Employee Dishonesty
    • Professional Liability Insurance
    • Punitive Damages
  • Resources
    • Articles
    • Refer a Friend
    • Insurance Glossary
    • Contact Us
    • Financial Ratings
  • About Us
    • About U.S. E & O Brokers
    • View our Blog
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Blogs
real estate button
cyber liability button
master policy programs button
Home > Blog > When E&O Insurance Will and Won’t Apply in an Insurance Agency
TUESDAY, DECEMBER 29, 2020

When E&O Insurance Will and Won’t Apply in an Insurance Agency

Two people dressed in business suits going over papers together

You are an insurance agency, so it’s probably obvious to you how important it is for you to do your job correctly. After all, if you make mistakes or fail in your duty, then it could be your client who suffers. They could, often justifiably, blame you for their losses, and they might expect compensation as a result. This significant operating liability therefore needs the security provided by quality errors & omissions insurance (E&O coverage).

Consider the benefits of E&O coverage, and the situations where it can help you out. When it comes to your company’s professional services, you don’t want to leave anything to chance. So, let this coverage be a safety cushion for times when mistakes happen.

What is E&O Insurance?

A business’s liabilities are the things that it is responsible for. In a general sense, your insurance agency’s liabilities include delivering quality products to your customers. Unfortunately, the risk exists that despite your best efforts, you will make a mistake that does the client harm.

When it comes to bodily injuries or property damage that you might cause a client, you will need general liability insurance. However, there are also professional mistakes that you might make which could cause a client financial harm. In these cases, you will need E&O insurance.

E&O coverage was created because some businesses offer professional services which, when done negligently, could cause a problem for a client. Insurance agencies are one of these businesses. If their mistakes cause a client harm, then they will likely have to pay up. In some industries, E&O insurance is called professional liability insurance or malpractice coverage.

Why Does My Agency Need It?

The best way to illustrate the importance of E&O coverage for your agency is with a real-world example.

Suppose that one day, a client buys homeowners insurance and requests to schedule one of their pieces of jewelry on the plan. By scheduling the item, they will be able to specifically insure that piece for an appropriate value.

However, due to a simple mistake, you forget to include the endorsement on the policy, and don’t catch the error. No one notices until the client calls one day to inform you that this piece has been stolen, and that they want to file a claim for it. Unfortunately, when you tell them that they don’t have this coverage, it will be easy to understand why they might become irate, demand compensation from your company for their loss, and even sue you over your failure.

You of course did not intend for this mistake to occur. However, the simple fact that it did makes you responsible for the client’s losses. Under the circumstances, you can turn to your E&O policy for help. The plan specifically addresses your professional mistakes, and under the circumstances can provide the impacted customer with an appropriate settlement, while covering your own legal expenses too.

Consider E&O insurance an imperative part of your business insurance portfolio, and work with your own commercial insurance provider to determine exactly how to tailor it to your agency’s advantage. In the end, you will be very glad you never went without coverage.

Also Read: E&O Insurance for Insurance Companies

Posted 1:20 PM

Tags: errors and omissions insurance, errors and omissions, e and o insurance, eando insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

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
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014

  • cyber liability insurance(30)
  • errors and omissions insurance(16)
  • e and o insurance(14)
  • business insurance(9)
  • directors and officers insurance(9)
  • d and o insurance(8)
  • eando insurance(7)
  • errors and omissions(7)
  • e&o insurance(6)
  • insurance(4)
  • coverage(4)
  • cyber insurance(3)
  • insurance agencies(3)
  • directors & officers insurance(3)
  • professional liability insurance(3)
  • directors and officer's insurance(2)
  • claims(2)
  • commercial crime insurance(2)
  • officers(2)
  • data breach(2)
  • small business owners(2)
  • small business insurance(2)
  • cyber liability(2)
  • omissions(2)
  • directors(2)
  • e & o(2)
  • tips to avoid scams(2)
  • errors(2)
  • policy(2)
  • covid-19(1)
  • ransomware(1)
  • phishing scams(1)
  • billing errors insurance(1)
  • dando insurance for insurance agencies(1)
  • fraud week(1)
  • crime coverage(1)
  • e and o(1)
  • cyber attacks(1)
  • eando insurance for insurance agencies(1)
  • storm surges(1)
  • finance(1)
  • cyber damage(1)
  • directors and officers insurance for the insurance industry(1)
  • social media(1)
  • white collar crime(1)
  • renewal(1)
  • insurance fraud(1)
  • commercial crime policy(1)
  • fraud(1)
  • fraud resources(1)

View Mobile Version

Featured Products

Featured Product Real Estate Featured Product Lawyers Featured Product Cyber Liability Featured Product Commercial Crime
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Logo
Social
Quick Links Home About Us Refer A Friend Contact Us
Location Corporate Headquarters
2050 W. Sam Houston Pkwy S Ste 1500, Houston, TX 77042
Contact O: 281-243-5755O: 713-984-1370F: 713-984-1152
© Copyright. All rights reserved. Powered by Insurance Website Builder