Any insurance agent will know that there are both personal and business insurance product lines. You are always thinking of other people, but take a little bit to examine your own portfolio of insurance. You should really take out an E&O plan which insures you against errors or anything you didn’t do that caused the policyholder to suffer a financial loss. You may be very experienced, but anyone can make a mistake. To protect yourself from mistakes and lawsuits that result from them, this E&O policy will be a lifesaver in terms of money you save and just overall stress. When you take a look at this insurance, there are two main types you can pick from: individual agent or agency policy coverage.
If you pick the individual agent’s policy, this provides a personalized liability plan for an agent and their office staff. The choice of limits will vary between insurance providers: most offer up to $500,000 each event and some up to $5,000,000 for each event. These are, of course, subject to a yearly cutoff no matter how many claims must be recorded. Deductibles can vary as well, but you will get a better rate with an increased deductible. It might be worth spending a little more money to get an all-encompassing plan for the entire agency. You will not have to worry about any future mishaps or omissions on your part or of anyone in the agency. If you have a lot of new staff, this could be important, especially if they are still in training and perhaps more prone to give out the wrong information to clients.
Agency policies are for agencies that employ more than one agent. Owners, employees, officers, and staff are all covered under this umbrella plan. There are specific clauses that deal with agencies and not just the individual.
You will have to decide whether you want a claims based policy or an occurrence policy. Claims made means that it will cover any claims while it is in effect, even if you did not have coverage at the time of the error. Occurrence plans are more costly, they will cover any time during the plan time, even if you let it go after that or it lapses on its own. You should make the best choice for you and your staff so that they will all be protected against adverse claims.
An Agent’s E&O policy has specific clauses to add coverage for such things as financial products, mutual funds, and any financial planning. You should pick a personalized policy that covers every type of policy you plan to write to make sure you are secure against any claims against you. Of course, you will offer your best advice to your clients, but there will still be times when errors occur. Be sure to ensure your future and that of your business.
