Insurance Agents Insurance Quotes
In today's increasingly litigious business environment, insurance companies and agents find themselves in need of purchasing liability insurance for themselves. Insurance Agents' Professional Liability Insurance is a specific variation of Professional Liability (or Errors & Omissions) Insurance designed specifically for professionals in the insurance industry.
This type of insurance protects insurance firms and agents from financial losses and expenses (including legal fees) that result from a lawsuit (even a frivolous one) filed by any person who had some dealings with company or an agent. Claims usually stem from some charge of "bad faith", negligence, or misrepresentation, failure to procure adequate coverage, or improperly handling a claim. Some policies also protect against slander, libel, and breach of contract. Think of professional liability insurance as a type of "malpractice" insurance for professionals. Not only does it protect your assets, it can help protect your reputation.
What Insurance Agents Insurance Is Not
Insurance professionals should be the first to know that they need to seek out professional liability insurance before a claim has been made against them, not after the fact.
Insurance agents insurance doesn't offer protection from fraud or willful misconduct, and it usually doesn't cover punitive damages.
Who Needs Insurance Agents Insurance?
Insurance companies and independent agents need professional liability insurance. It may actually be required by some states, and even if it isn't, it usually makes good business sense to carry it, especially if you're involved in the commercial insurance side of the business. A professional liability policy adds an extra measure of legitimacy to your practice, and gives prospective clients more confidence in your professionalism.
Insurance agents who work for insurance companies may elect to purchase additional professional liability coverage to offset a large deductible or to increase coverage limits.
Things To Think About
Insurance companies can usually lower the cost of premiums by having employees attend loss control seminars.
Some policies are designed specifically for property and casualty insurers, and others for those specializing in life, health, and accident insurance.
Most policies for insurance companies will cover partners, officers, producers, and full-time employees. If applicable, find out if a policy also covers part-timers and independent contractors like consultants.
You might also want to check with your professional association to see if they offer any type of professional liability insurance. Associations often offer it to members at a slightly lower cost.
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