As an insurance agent, you provide a valuable service to your own clients. You may forget your own risk in running a business and not seek out the right insurance products that meet your own needs. Don’t be like your clients who tell you that they don’t need a particular type of insurance, because “no one is ever going to sue me.”
It’s estimated that one out of every seven insurance agents will face a lawsuit over errors and omissions during their career. This is the main reason you need E and O insurance for insurance agents. You risk your entire business when you don’t have this type of policy to protect yourself. Doctors may be sued more than any other profession, but that doesn’t mean you aren’t at risk. You know how litigious Americans are.
You are open to lawsuits when you make a mistake or error. Some lawsuits are even brought up without any substantive evidence, just an upset client who wants someone to pay for their damages. E and O insurance for insurance agents covers the costs of a lawsuit and any settlement, up to the limits of your policy. The cost of a defense, whether it’s a valid or unfounded claim, could bankrupt your business. Don’t get caught without the insurance protection that you need. Discuss your business with your insurance agent, to make sure you have the right amount of coverage.