There is an old question that runs along the lines of who cuts the barber’s hair. The same might be asked about who insures the insurance agent. The same story covers the fact that most mechanics have the worst running cars in town. Many insurance agents are far too busy worrying about taking care of their customers’ needs to stop and consider the idea that they might need E&O insurance for insurance agents.
Are You Covered?
Before you scoff and turn away from talking about coverages in much the same way many of your clients do under the assumption that they are covered, consider where you stand. Insurance Agent Insurance comes in the form of errors & omissions insurance. Let’s assume for a minute that you sell a customer homeowner’s insurance for their new home, but that in the process of filling out their policy, you forget to include one vital piece of information or fill it out incorrectly.
Should something happen to their home, they are covered right? After all they bought their insurance from your agency; imagine how they will feel when that small clerical error or omission that you made renders their policy null and void. Do you have the financial resources to cover their losses? Most agents do not. Even if a judgement is not made against you, there are legal fees to consider. This is only one important reason to make sure you have the appropriate level of E&O insurance for insurance agents.
What are you going to do if you are an independent agent and one of the insurance carriers you use folds without paying on a claim? Your agency is going to be held liable for providing the coverage that the claimant was under the impression they had. While most states have a guaranty fund that is supposed to cover this type of situation, you need to be sure that your insurance agent E&O policy has this covered in case your client bring you into a suit to recover his losses.
Protecting the Protector
Insurance for insurance agents must cover all of the products you sell, from auto insurance to life and investments. You may find that there are some products you sell that are not eligible for coverage; you will need to research each policy offering to make sure you get the broadest coverage possible. You are going to find that error and omission insurance for an insurance agent can be a very specialized field and you will need to find an agency that specializes in providing this type of coverage.
You need to start out by assembling a professional submission that covers all of the products your agency sells and the level of insurance agents insurance you are interested in. You can then submit this through EINSURANCE and let us find those specialty insurance companies that offer what you are looking for. You can then review the different offering and choose the policy that best suits your needs and your budget so that you are fully covered no matter what type of disaster happens to strike you in the future.