Why Do Insurance Agents Need Insurance Agent Professional Liability Coverage?

As an insurance agent, you may wonder why you need professional liability for your company. After all, you are the one providing coverage for so many other individuals and companies, that you are bound to be in a good place. Unfortunately, there are some things that could happen without you even being prepared. That is when it would be essential to have insurance agent professional liability. The following are some of the main reasons why this coverage is essential to your business:


  • Errors – Nobody is perfect, no matter how hard they try. This is why insurance is needed to cover errors. An error in the insurance industry is when the agent provides faulty service to the client. This could be a policy that did not include everything it should, or even a contract that did not contain full disclosure.
  • Omissions – In addition to errors that occur, sometimes a service is omitted all together. Of course, you would never intend to do this to a client, but mistakes happen and clients expect perfection. Omissions are protected under professional liability.


With errors and omissions coverage, your legal fees will be covered should the claimant take you to court. Additionally, there will be policy limits for damages that are awarded, should it come to that. Speaking to an advisor about insurance agent professional liability will ensure that even though you are doing your best, you will be protected in the case of a mistake during business.