As an insurance agent, you provide professional advice and services to your clients. If you happen to make a mistake, you can be liable for any financial damages caused to them. A client might also accuse you of making a mistake and have to defend yourself in court even if you didn’t do anything wrong.
Consequently, you need what’s called errors and omissions insurance (or E&O for short). Also referred to as professional liability insurance, E&O insurance can keep you from having to pay large out-of-pocket sums related to liability and lawsuits.
A type of insurance for businesses, insurance agents E&O coverage protects you from three main types of professional errors or omissions:
Even the most experienced and careful insurance agents commit errors or omissions from time to time. You’re human, after all. So, planning to just be “extra careful” in everything you do rather than maintaining insurance agents E&O coverage is a very risky—and potentially costly—strategy. Taking that approach is especially unfortunate when considering that insurance agents E&O insurance is very affordable.
You can purchase E&O insurance for insurance agents from biBERK for as little as $400 per year in some cases. You can determine your specific cost by getting a fast, free, self-service E&O insurance quote online.
All you have to do is provide a little information about your business, and in a matter of minutes, you know what you’ll pay to protect yourself from unexpected financial burdens—the type that can quickly put an insurance agent deeply in debt or out of business altogether.
A helpful feature of errors and omissions insurance for an insurance agency is that it can include coverage for mistakes the agency made before the policy went into effect—provided that they didn’t know about the error when purchasing the policy. This is based on what insurers call a retroactive date.
For example, imagine that you purchase errors and omissions insurance, and it’s in effect as of July 1 of last year. Your insurer may allow you to set the policy to cover mistakes made by the agents in your agency back to, say, January of last year. So, an error made in March—four months before the policy was active—may be covered.
As with every policy, errors and omissions insurance for insurance agents doesn’t cover certain things. These exclusions will vary from one policy to the next. Typically they include things like illegal acts, employee injuries, damage to your company’s property, and injuries to clients or others who visit your place of business.
The common denominator with these exclusions is that the causes aren’t related to your professional advice or services. When you purchase errors and omissions insurance from biBERK, our licensed insurance experts can clearly explain what types of claims are excluded if you have questions. It’s crucial that you, as the policy owner, and anyone covered by the policy understand the exclusions. It’s not a good use of your team’s time to report a claim that the policy clearly states will not be covered.
Requirements for E&O coverage vary by location. However, even if insurance agents E&O coverage isn’t required where you are, it’s a good idea to have it. The peace of mind that comes from knowing that an error or omission doesn’t have to damage your business financially is truly priceless. And operating your business confidently tends to impress your existing clients and help you attract new ones.
Plus, not only is it fast and efficient to get a quote online, but it’s also easy to purchase coverage on the biBERK website. The same is true of reporting a claim and managing your other biBERK small business insurance policies—like workers’ compensation insurance, commercial auto insurance, general liability insurance, and more.
biBERK takes the hassles out of properly protecting your business so you can focus on running it effectively.