There are many things that you must have to sell insurance. One of the most essential is insurance agent E&O. If you don’t have this coverage, you risk experiencing financial loss if a client sues you.
What Is E&O Insurance?
Insurance for errors and omissions (E&O) is a form of liability insurance that protects agents against claims of negligence or malpractice. It can also cover them for breach of contract, if applicable. If you’re an independent insurance agent, this policy is required by most state laws to sell insurance products.
Why Do You Need It?
You need insurance agent E&O insurance because it protects you from losing your business. If a client sues and wins, paying off the legal expenses could take years. Even if you win the case in court, there are still fees associated with hiring an attorney and other costs related to litigation.
You don’t want to risk losing money on claims that could have been prevented had an error been caught before it became a claim. For example, if a customer files a complaint against one of your agents who sold them insurance without explaining all the details clearly enough during their initial meeting. This issue can happen because many agents are busy getting new clients instead of educating existing ones about renewals or policy changes. Insurance agencies E&O protects against these problems.
If you need insurance agent E&O insurance, visit American Agents Alliance.
