What Is E&O Insurance for Insurance Agents?
Errors and omissions insurance for insurance agents is a type of professional liability insurance
. It helps protect your business from litigation if a customer sues you for a mistake in your professional services. E&O insurance covers the legal fees to defend your insurance agency in court.
While The Hartford does not offer errors and omissions insurance for insurance agents at this time, we’ve partnered with Tivly to help you get the coverage you’re looking for.
Insurance agencies recommend all kinds of liability coverages and review policies for their customers. For example, if one of your customers claims that you omitted an important homeowner coverage that they needed, they could sue you for property damages. And those defense costs can add up and put your small business’s reputation at risk.
What Does E and O Insurance for Insurance Agents Cover?
Errors and omissions insurance
covers the mistakes your small business may make in the course of running an insurance agency. Whether you gave a customer bad advice or omitted an important insurance product, E&O coverage can help you pay for claims filed against you. Even if you did nothing wrong, a customer can still sue you for a perceived error, such as:
Let’s say you advise a customer to carry insufficient liability coverage on their auto insurance policy. If an expensive accident bankrupts them, they could potentially sue you for negligence. E&O insurance for insurance agents can help pay for your legal fees.
Not Delivering on Promised Work
Insurance agencies match their clients with trusted insurance carriers. Customers can file lawsuits against you if they believe that your small business failed to perform this basic duty in the requested timeframe. E&O insurance for insurance agents can help cover your legal defense costs.
Making Professional Mistakes
Business owners make mistakes too, but in the insurance industry, errors can be very costly. Imagine you inadvertently recommended the wrong type of liability coverage to a customer. They now lack adequate protection for their home or property. If they file a lawsuit against your small business, E&O insurance for insurance agents can help cover your legal fees.
How Much Does E&O Insurance for Insurance Agents Cost?
On average, E&O insurance costs
business owners between $500 to $1,000 per employee, per year. If your insurance agency has 25 employees, you can estimate your errors and omissions insurance premium to be between $12,500 and $25,000 annually.
Keep in mind that your exact insurance cost will vary based on several factors, including:
- Business size and type
- Claims history
- Liability coverage amounts
Additional Liability Coverages for Insurance Professionals
Seguro general contra terceros
General liability insurance
can help protect insurance agents from claims of bodily injury, property damage or advertising injuries. This type of liability coverage can help business owners pay for medical expenses and the out-of-pocket costs of property damages.
Workers’ Compensation Insurance
Workers’ compensation insurance
, also known as workers’ comp insurance, offers benefits that can help your employees pay for medical expenses caused by a work-related injury or illness. It’s important liability coverage for small businesses to have, because even if you don’t have employees, workers’ comp insurance can help you pay for your own medical treatment.
Póliza para propietarios de empresas (BOP)
Many insurance companies offer increased protection by bundling coverage through a Business Owner’s Policy (BOP)
. A BOP combines three insurance coverages into one convenient and lower-cost policy:
Cyber Liability Insurance
Cyber liability insurance
can help protect insurance agents from technology-related risks, like data breaches and stolen customer information. This type of liability coverage is recommended for any business owner who handles sensitive customer data.
Seguro comercial para automóviles
If an insurance agent gets into a car accident while driving on the job, el seguro comercial para automóviles
can help them cover medical costs and pay for property damages. Commercial auto insurance usually has higher limits and comprehensive liability coverage to help protect business owners who use a vehicle for business reasons.
Learn More About E&O Insurance for Insurance Agents
We understand the unique risks that insurance agents face. Keep your agency protected so you can continue supporting your clients. Find the liability coverage you need through our partner, Tivly. Get an errors and omissions insurance quote
Última actualización: 17 de marzo de 2023
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