What happens to you as an independent agent should one of the insurance carriers you use go out of business without resolving a claim? If you have insurance agents’ liability insurance, you can breathe a little easier, as it usually covers attorney fees and settlement costs. Otherwise, you and your business may be liable.
Covering Your Own Services
An insurance agent errors and omissions policy cover’s your liability in cases where a mistake has been made in a client policy and they can’t recover reimbursement for a loss. It should cover all of the policies you sell, from car insurance to life insurance and more. You may find, however, that some products are not eligible.
Error and omission insurance is a specialized field, so you will need to do a little research to find an agency that provides insurance agents’ liability insurance. In many cases, these agencies work with a variety of different carriers to obtain coverage for each policy type.
You can start the process by assembling a document that covers all of the products you sell. Work with a specialized agency to examine these policies and ensure you have the best coverage possible. Working together, you should be able to find coverage for all your needs at a price you can afford.