3 Reasons Insurance Brokers Need E&O Insurance
Humans are known to make mistakes and insurance brokers are no exception. When you do make a mistake, E&O insurance for insurance brokers steps in to protect your financial assets. There are many reasons to have E&O insurance.
When you make a mistake on an insurance policy, the client may be harmed financially. That client can then turn around and sue you for financial compensation. The E&O policy steps in to help with the legal costs and any awarded judgments from the lawsuit.
Brokering insurance contains a lot of information that is relayed between the broker and the client. If the broker fails to provide certain information or is perceived to have made an omission, the client suffering financial loss may sue the broker. Even the most communicative broker may forget a minor or subtle detail that becomes important to the client.
Having an E&O or malpractice policy for your insurance agency can actually go a long way to building trust with new and existing clients. Some clients may only want to work with brokers who have insurance on hand if there is an error or omission. It shows that the broker understands they make mistakes and are prepared to make them right.
The high risk of working as an insurance broker makes having E&O insurance for insurance brokers a must-have item. Don’t let a mistake ruin you financially.