When you are business owner, you will need an Errors & Omissions insurance policy. Before you agree to professional liability insurance for insurance agents, you should know a bit about this type of insurance as well as what you need as a professional. Not all policies are created equal and the best policy for you probably includes some level of customization.
What Is the Difference Between Professional Liability and Errors & Omissions?
The terms professional liability and errors & omissions are generally interchangeable. This type of coverage protects you and your company against clients’ claims of negligent actions or inadequate work. The insurance will usually cover court fees and settlements up to a specified cap. These financial costs can often bankrupt an otherwise healthy enterprise.
Basic Professional Liability Policy Elements
Your eligibility for certain policies will likely be partially based on your revenue and will have a cap as to how much you can collect in the event of a claim. Coverage may include:
- Innocent insured
- Independent contractors
- Property damage
- Contingent bodily injury
If your enterprise has specific needs, add-ons are usually available for purchase.
Professional liability insurance for insurance agents is a must. You don’t want to take an unforeseen financial hit because of a client’s claim. Shield yourself with an E&O coverage plan that will provide adequate protection against potential future obstacles.