No matter how long you’ve been working or how well you do your job, providing direct services for clients always holds the risk of making a mistake. In the case of working as an insurance agent, this can lead to some financially sticky situations where clients may find that one little miscommunication or poor documentation lead to huge monetary disasters. This often will lead to lawsuits, court cases and legal fees that can, in turn, create financial problems for you. This is why insurance agent E&O coverage is perhaps one of the most important policies to have when working in insurance.
What Does E&O Cover For?
Standing for Errors and Omissions, E&O is a type of insurance coverage that covers in cases of mistakes and accidents, whether through errors or omissions. Some claims that can often arise in insurance lawsuits that can be covered by insurance agent E&O include:
Negligence, failure to perform a service
Miscommunication, lack of communication or failure to explain
Lack or loss of documentation, misprinting or misreading
Oversights, mistakes, poor judgment, etc.
As there are many small mistakes that can lead to big consequences, resulting lawsuits can be incredibly costly. In these cases, insurance agent E&O can cover the resulting fees needed for court, including attorney costs and settlement, if needed.