Reducing Insurance Agent Errors and Omissions Risks

Posted on: January 23, 2015 by Newmark Insurance

Reducing Insurance Agent Errors and Omissions Risks

Reducing Insurance Agent Errors and Omissions Risks

As an insurance agent, you are likely very well versed in selling professional liability insurance, also known as errors and omissions (E&O) coverage, to your clients of various professions. It’s important to remember though, that E&O insurance is just as important for insurance agents and brokers. It’s time to ask yourself if you are as financially prepared as you should be, if a client were to sue you for any reason.

Misrepresentation, or even an accusation of misrepresentation, is perhaps the most common claim that insurance agents face. Let’s say the agency you work for misrepresents their product or service, even if unintentionally. The client or clients affected may file a lawsuit. In typical situations such as this, if the client relied on the information given to them and that resulted in lack of coverage or no coverage, they have a right to pursue litigation.

So how can this be avoided? There is no 100% fool-proof method to reduce insurance agent errors and omissions risks, which is why Insurance Agent Errors and Omissions Insurance coverage is so imperative. However, the one thing you can do to potentially reduce your risks of facing a claim is to be as honest and forthcoming as possible. When clients need financial backing, they want to know they are in good hands, and your honestly sets a basis for your trusting relationship with them.

At NewMark, we understand that you’re in the business of protecting your clients against unforeseen risks that could cause property damage, bodily injury, and financial loss. We also know that everybody makes mistakes, and insurance agents are no exception. For more information about our Errors and Omissions products for Insurance Agents and other various professions, please contact us today at (855) 777-6549.

Posted in: blog Insurance Agent Professional Liability