Professional liability insurance protects certain industry individuals from financial loss that may arise when a claim is issued by their client for neglect or failure to perform contractual duties. There are several types of liabilities that are associated with each industry, such as malpractice insurance for medical staff, but insurance agent E&O coverage deals with the risks for those providing an advisory and loss protection service. As reported on https://www.axisins.com/products/errors-omissions-professional-liability-insurance/insurance-agents-brokers/, it is just as important for insurance agents to take off their own risks and exposures whenever providing the same service to clients.
While errors and omissions services all vary, most of them have certain common coverage areas that fill in the gaps for specialty areas. These could include:
Bodily Injury/Property Damage
Financial Plan Administration
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The coverage of your plan might seem comprehensive at the outset, but the true test will be if you ever find yourself in court. Some plans may pay any settlement costs but deny coverage for the defense fees. Other plans may cover feed but not the settlement amounts. Be sure that the E&O coverage contract you sign will provide the financial support for all aspects of a claim.
The risks associated with insurance agency practices don’t go away when you retire or change professions. Carrying errors and omissions is something that you should consider for the long-haul.