Insurance Agents E&O

Insurance agents are there to help protect corporate, family and personal assets by providing insurance and risk management.
An agent is often the first to respond when a client or business makes a claim, but who insures the agent if they make a mistake? Insurance agent errors and omissions (E&O) coverage is designed to protect those who protect the masses. With one out of every six insurance agents facing an E&O claim at some point during their career, adequate coverage is important.

Why Insurance Agent E&O is Important

If and when a professional or business:

  • fails to add or procure coverage;
  • provides an incorrect explanation of benefits or terms;
  • provides an incorrect certificate;
  • fails to review and explain coverage or policy changes, and properly advise the client;
  • fails to obtain excess coverage;
  • allows a gap in coverage; and/or
  • falsely states that coverage exists.

Common Insurance Agent E&O Coverage Topics:

1: Develop and distribute a one-page sales sheet about insurance agent E&O coverage.
2: Provide training to qualified staff.
3: Document all conversations and date pages on proposals/summaries.
4: Establish written procedures for handling accounts.
5: Use checklists for all renewals and new clients.
6: Conduct annual file audits.
7: Ensure every policy summary has a disclaimer.

8: Provide written documentation to the client if they decline coverage.

9: Document if the client chooses not to renew coverage.
helpful information: