Any business that provides a service or gives advice is exposed to a certain amount of risk. A good insurance agent knows this truth more than most and works hard to provide commercial clients with quality professional liability protection.
Agent: Insure Thyself
Much like the old proverb that proclaims “physician, heal thyself,” insurance agencies must remember to protect their own financial interests too. Few professions are more open to claims of mistakes and/or omission than insurance providers. In the event of a claim, it is of paramount importance that your business carries comprehensive e and o insurance for insurance agency.
In today’s litigious climate, even a frivolous claim can be very expensive. According to industry sources, most claims against agencies arise from an alleged failure to:
- Properly identify client’s risk exposures
- Obtain coverage in a timely fashion
- Provide complete and accurate information to the carrier
- Notify client regarding policy termination
- Communicate policy requirements and provisions
- Submit a claim within the prescribed deadline
- Add a loss payee or additional insured, as instructed, to an original policy
- Match prior coverage when writing a new policy
- Pay a claim
- Recommend needed policy limits
Quality e and o insurance for insurance agency will provide payment of legal defense as well as any settlement award, within the policy’s prescribed limits. Many policies also include provisions that pay for loss of business revenue for time spent away from the office either at trial, hearing, mediation or deposition.
Don’t overlook this important insurance need. Contact a broker and protect your agency from potentially disastrous financial ramifications.