Insurance Brokerage & Agency Errors & Omissions Coverage
Insurance Broker / Agent Professional Liability Insurance (also known as Insurance Broker Errors & Omissions Insurance, or Insurance Agency E&O) protects all types of insurance professionals if a client alleges that you were professionally negligent or failed to perform professional duties, or in the case of the failure of your work to perform as promised.
E&O Coverage is available for all types and sizes of insurance agencies / brokerages, including:
- Retail Insurance Agents & Brokers
- Benefit Plan Administrator
- Benefit Plan Consultant
- Independent Contractors
- Insurance Specialty Operations
- Life / Group
- Managing General Agencies
- Specialty Lines
- Third Party Administrators
- Wholesale Brokers
Insurance Broker / Agent Professional Liability Insurance Protects Your Business
The high cost of a legal defense could put your insurance agency or brokerage firm out of business. No one knows better than an insurance broker that your company's survival and your personal financial security depend upon protecting yourself against the impact of a lawsuit - but have you put in place for your own company the coverage you recommend to your clients?
Professional liability claims against insurance agents and brokers happen more frequently than you may realize. The average claim frequency varies depending upon the size, location, type and business, Overall, about one out of eight insurance agents/brokers has a professional liability claim each year.
Typically, an insurance brokers professional liability claim is for failure to place coverage or failure to place adequate coverage. An E&O claim often occurs after an insurer denies a client's claim. The severity of the E&O claim will often depend upon the severity of the claim denied. For example, a claim against a broker for inadequate coverage on an auto theft is significantly less severe than a claim for failing to place coverage for a large ship that sinks.
Often, a claim may not involve a clear error or omission. For example, a client may be unhappy with result of a claim filed with an insurer and therefore bring a claim to obtain additional compensation. For an insurance broker, these types of claims can be just as difficult and expensive to defend as a clear-cut error. E&O insurance typically pays for the cost of defending this type of claim as if it were a clear-cut error on the part of the insured agent / broker.
Almost any firm or individual that improperly performs services can cause a client to suffer an economic loss - and mounting a defense is expensive. The impact of even a baseless claim can be devastating. Would your company have the resources and expertise to defend against such a claim? Request a Quote
Why Do I Need Insurance Broker / Agent E&O Insurance?
Mistakes Happen. Even the most skilled professionals are likely to make an error at some point. From catastrophic equipment failures to human oversights that result in personal injury, many incidents can result in a lawsuit.
You Can't Be All Places At Once. As your firm becomes more successful, you may not be able to personally handle every aspect of each client's coverage. Errors & Omissions coverage insures not only your mistakes, but also the mistakes of the employees and independent contractors you hire. Request a Quote
The exposures facing insurance professionals are changing rapidly. Recent news coverage of problems at large insurance carriers and on the crack-down on Wall Street have increased the professional liability exposures of insurance brokers and agents to claims of insurer insolvency.
Some of your clients may require that you and your subcontractors carry Errors & Omissions insurance. The right kind of E&O policy can protect both the insurance firm and subcontractors from claims of a perceived error or omission, even if the problem occurs months after the initial consultation. Request a Quote
What Is Covered by Insurance Agent / Broker Errors & Omissions Insurance?
Insurance Broker / Agent Professional Liability Insurance includes legal defense costs - no matter how baseless the allegations. It will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Doesn't My General Liability Insurance Provide the Same Protection?
Errors and Omissions insurance coverage is not provided by a
Commercial General Liability policy. Commercial General Liability does NOT provide coverage for errors, contract performance disputes or any other Professional Liability issues. Insurance consultants and companies who have General Liability without Professional Liability (Errors & Omissions) coverage are taking a serious risk. It's like a doctor practicing medicine without Malpractice Insurance.
Request a Quote Customized Insurance Broker / Agent Professional Liability Insurance Coverage
Your Professional Liability Insurance policy can be customized to include:
- a business owners package that includes general liability insurance and property insurance
- options including coverage of Personal Injury claims
- defense costs outside the limits of liability
- deductibles beginning at $0
Getting the right level of coverage at the best price. Underwriting insurance agents / brokers professional liability insurance requires a detailed examination of the operations of the applicant. The basic exposure base used is typically either revenues or premium volume. Also considered are a wide range of business and operating factors, including frequency and severity potential of the insurance business handled, management experience, prior claims, internal procedures and employee training.
Contact Brunswick Companies today to request an insurance broker / agent professional liability insurance quote.
