As an insurance agent, E&O insurance, or errors and omissions insurance is a crucial and valuable coverage. It protects your agency against losses caused by an error or omission that someone on your staff makes. People file lawsuits for things as simple as missing a single document or miscommunication errors. When it comes to E and O for insurance agents, here are some things you need to know.
You Should Plan Ahead
Even with insurance, you need to have a plan that helps prevent errors and omissions. You want to be able to mitigate claims. For instance, you should make sure that your clients sign waivers when they opt out of coverages that would benefit them. Likewise, you want to contact your clients about any changes to the policies.
You Should Buy in Advance
Do not wait to get E&O coverage. If you wait too long, you are exposing your staff to major risks. If the claims occur before you get your policy, then your coverage will not cover it. Plan and make sure that you buy your coverage as soon as possible.
If you wait on E and O for insurance agents, then you are putting your firm at risk. Firms can suffer lawsuits for virtually anything. Insurance protects you, even in the cases where you are falsely accused.