Mistakes happen, even to the best of us. Fortunately, errors and omissions (E&O) insurance can help you mitigate the risks and costs that come with your profession.
The insurance for those who are selling insurance, E&O insurance can be a necessary purchase, especially if you want to protect yourself from costly lawsuits. But, what is it and do you really need to buy it? We’ll cover all the basics so you can make an informed decision!
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What Is E&O Insurance?
In short, E&O insurance is a form of professional liability insurance. It can help financially protect insurance agents who are accused of errors, insurance agent negligence, lacking to fulfill certain promises, or other forms of insufficient work. Usually, it covers court costs and settlement costs up to the policy’s coverage limit.
Who Needs E&O Insurance?
Anyone who provides advice or services to others professionally should consider buying E&O insurance. If you’re an insurance agent, you provide both, so we highly recommend you buy this form of protection. Additionally, many insurance carriers actually require agents who market and sell their plans to hold an active E&O policy.
Anyone who provides advice or services to others professionally should consider buying E&O insurance.
How Much Does It Cost?
The cost of E&O insurance depends on who you buy it from, but you probably already knew that if you sell other types of insurance. An E&O policy’s cost can also depend on the size of your company, where you do business, your lawsuit history, and the coverage limit.
If you team up with a field marketing organization, like Ritter Insurance Marketing, you may be able to get E&O insurance at a lower, discounted cost.
If you team up with a field marketing organization (FMO), like Ritter Insurance Marketing, you may be able to get E&O insurance at a lower cost. For example, Ritter offers E&O coverage to its contracted agents at discounted rates through Calsurance.
Where to Find Good E&O Insurance
If you’re searching for E&O insurance, we recommend asking your upline or FMO where they recommend buying it from. Good FMOs will have partnerships with companies who offer this form of coverage, and even offer agents discounted rates on this type of protection.
Ritter offers E&O insurance through CalSurance. Agents can choose from multiple coverage and limit options, as well as installment payment plans!
Why Buy It?
If a client thinks you’ve wronged them in some way, professionally, they may try to take you to court. Even if you don’t have to pay a settlement, the most trivial lawsuits can lead to unexpected, major court costs. E&O insurance can cover your attorney and legal fees, including any settlements ordered inside of or reached outside of court.
Even if you don't have to pay a settlement, the most trivial lawsuits can lead to unexpected, major court costs.
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As an insurance agent, your job is to help your clients be as prepared as possible for the worst and protect them from financial risks. You could have the best intentions with a sale, but sometimes things can go sideways — especially in today’s litigious environment! You can’t forget about the importance of protecting yourself financially, from bad situations, too.