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 Why Even Perfect Independent Agents Need Errors & Omissions Insurance

Why Even Perfect Independent Agents Need Errors & Omissions Insurance

Sometimes insurance agents spend so much time making sure that their clients are covered that they forget to cover themselves. This can be an extremely costly oversight. Even a perfectionist that has never had an issue with clients in the past can’t be too careful. The most common reason agents cite for not carrying E&O insurance is that they don’t need it because they don’t make mistakes. But, E&O insurance doesn’t just cover actual errors and omissions damages – it covers the legal defense costs of fighting a claim of professional negligence. Because of the litigious nature of people today, insurance agents may find themselves accused of professional negligence, even if they have followed everything to the letter of the law.

Don’t end up in the position of having to scrape together funds to hire an attorney, especially when having E&O insurance may be the difference between being able to afford a competent defense lawyer and having to go with the cheapest option in the area. A good E&O policy can be the  difference between a catastrophic loss and surviving a malpractice accusation.

An insurance agent who carries E&O insurance is covered from false accusations by unscrupulous customers, but this isn’t where all of the cases come from. Innocent clerical errors can lead to these claims as well. While there may have been no malicious intent on the part of the agent, the error may have caused a financial hardship for a client, and the agent will be held responsible. By carrying E&O insurance the agent won’t have to worry about typographical errors in documentation ruining his career. Investing in Errors & Omissions insurance is almost mandatory for those who expect to be successful (in some states it actually is mandatory as a condition for licensing). Call us to go over your Texas Errors & Omissions insurance options.

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