The insurance industry is a large and vital part of any business management. If you run an insurance agency, then you’ll know how your coverage and aid can save companies from financial distress and bankruptcy. It is due to insurance programs that medical bills, legal fees and other costs can be covered in the cases of mistakes and accidents. What if, however, your agency is the one to make a blunder? In this case, insurance is needed for insurance—even if it may sound redundant. Insurance agency E&O is perhaps the most important type of policy to ensure you have in order to protect your agency from some serious problems.
What Is E&O?
E&O stands for Errors and Omissions, and essentially covers the costs involved with missteps made by your agency that can be blamed for a client’s less-than-favorable outcome. As people in recent times are much more likely to follow up with claims and lawsuits, insurance agency E&O is a necessary competent in the modern age. If someone were to make claims of negligence, miscommunication, missing documentation or any type of error or omission, the insurance coverage can pay for:
The settlement, if necessary
And other court fees
As these costs can add up, having insurance agency E&O can save your firm a great deal of money in the long run, as mistakes and lawsuits are bound to happen.