Errors and Omissions coverage protects your firm and yourself from client allegations. If you fail to provide a service, if you provide a faulty service or if your advice did not come into fruition, a client may hold you responsible. Insurance agent E&O may also be referred to as professional liability insurance. In order to make the best decision for insurance coverage, you need to know what E&O insurance can do for you.
What Does E&O Cover?
E&O covers a variety of costs. It covers the following:
- Judgment costs
- Settlement costs
- Defense Costs
It’s important to remember that you owe money in defense costs even if you are found not guilty of any claims against you.
Why Do You Need E&O?
The simplest answer is that every firm makes mistakes. Even if you have solid risk management practices and a great team of agents working for you, mistakes will still occur. No one can predict the future entirely and while you may provide insurance for a company or person that you believe to be the best, there may still be gaps or problems in that coverage. Later, the client may sue over it.
When it comes to coverage that protects your firm, insurance agent E&O is crucial. This professional liability coverage keeps you safe in the case of lawsuits due to faulty service or advice.