Operating an insurance agency often comes with a lot of risks that are easy to forget. Even though you are responsible for covering the needs of clients with insurance coverage, you also need to take time to think about how to best protect your own company. If one of your agents makes a mistake when providing a policy to a client, for example, you absolutely want to be certain that you have an E&O plan that covers your entire team.
What Is E&O Coverage?
There are plenty of reasons to take out a policy for insurance agent E&O. As mentioned, having this type of coverage guarantees that you will be safe should any member of your team make any inaccurate promises or statements to clients. Though your best action is to limit negligence by training your agents to meet the correct standards of the industry, a policy like this helps to make sure you are safe should a worst-case scenario play out due to simple human error. Other policy options to consider can include:
- Directors and officers coverage
- Workers’ compensation
- Commercial auto protections
Protect Yourself on All Fronts
Accidents of all kinds can happen when you least expect. While a simple slip of the tongue might not seem like the end of the world, it can lead to some serious financial consequences. Review how E&O coverage works and see how it can best protect you in the event of a problem with an agent.