California Insurance Services Errors And Omissions Insurance
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Statistics demonstrate 1 out of 7 insurance agents will report an EO claim at some point during their career. Today insurance agents are 4th among professions in claims filed against them. Only physicians, attorneys and accountants have more (Tillinghast Survey).
An insurance agent broker not properly protected by Los Angeles Insurance Services Errors And Omissions Insurance risks the possibility of being held fully responsible for the damages if a claim is filed against them.
Insurance agent brokers render vital services to clients thru advising them to find and obtain proper coverage. Some insurance agent brokers, though, never consider the risk involved with this profession. Advice that you make for coverage, either to buy or turn down , can come back as a law suite in the event a customer feels that you were mistaken in your judgment. Customers facing a financial loss regarding insurance coverage, or improper coverage, can lodge a lawsuit naming you, endangering your agency, livelihood and property.
== Reasons For Los Angeles Insurance Services Errors And Omissions Insurance ==
Professional liability insurance covers the broker against any allegation, real or perceived, arising from their involvement in the sale or servicing of an insurance product. Los Angeles Insurance Services Errors And Omissions Insurance tailored to serve the small individual agents to large agencies delivering insurance coverage. With your coverage you get 24 hour protection against claims as a result of negligent acts, errors or omissions arising during your activities as an individual agent or broker. Protection is available for you as an agent or broker and includes your non-licensed staff.
“We’re in an increasingly litigious environment,” says Claire Wilkinson, vice president-global issues, at the Insurance Information Institute, in New York. “There’s definitely an uptick in the number of agents buying insurance, in part because of the litigious environment. It’s essential for them to have adequate coverage.”
“At this agency, we wouldn't think of operating without suitable coverage,” says Jim Armitage, vice president of multi-lines agency Arroyo Insurance Services, in suburban Los Angeles. “In this litigious climate, people sue at the drop of a hat, and you need to have insurance protection.”
“We wouldn't even dream of doing that,” said Bernstein, vice president of TLB Insurance Services. “The risk is horrendous; it’s hard to believe anybody would operate in the insurance profession without suitable coverage.”
“Even if you could get away with it,” warns Mann of Fireman’s Fund, “it’s not worth it because you would at the very least lose your company appointment. But beyond that, you could lose everything including your house and your business if you get sued and have no E&O protection.”
“Litigation from hurricane, flood and other weather-related claims will clog up insurance company claims offices and courts on a long-term basis. Katrina claim cases will go on for years and years. It’s a flood of litigation, it’s here to stay and it’s only going to get bigger.”
Brokers without EO insurance stand to lose their homes, their livelihoods and their possessions .
== Insurance Brokers Risk Is Higher Than They Think ==
“Agents need to understand their exposures might be much higher than they think they are. So they should buy as high a limit as they can afford. A $1,000,000 limit isn’t adequate for agents in these litigious times.”
Henderson’s comments are especially true for agents in California, considered the litigation capital of the country. Given the rate of litigation combined with the high valuations of commercial and residential properties, carrying only $1,000,000 in limits is shortsighted, Henderson says. Defense costs alone could run from $100k to $500k depending on the complexity of a case, he noted.
== As A Broker Are You Sufficiently Covered? ==
There are precautions you need to take concerning your profession. In the first place, your career as an insurance broker has a lot to do with the care you provide your clients. In the course of carrying out your duties as an agent, you may commit an error or mistake. Your clients may decide to recover damages in court. If you’re not adequately protected by E&O insurance policy, you may end up bearing the full cost of the litigation process. You can help yourself with E&O insurance for insurance agents. This is a business liability insurance device designed to protect insurance agents from whatever errors, mistakes or omission they may commit while discharging their duties.
Errors and omissions happen in the course of your work as a property and casualty insurance agent. It may happen as a breach of a client agreement. Anytime an mistake happens, a lawsuit may be filed against you or your agency. When you are properly protected by E and O coverage for insurance agents and brokers, you’re shielded from shouldering the entire fees of legal defense for any claim that is submitted against your agency because of any error or omission that occurred or allegedly occurred.
== Faulty E and O Insurance Protection ==
Gaps in protection are common in E and O policies. Surveys showed that most professionals are not fully aware of what a gap in insurance really is or the dire results. For example several insurance professionals mistakenly thought because they were not writing policies during specific months, they did not need continuous coverage.
E and O insurance for P&C insurance agents is professional liability EO insurance specifically designed for the exposures of insurance agents brokers and agencies.
Insurance agents have very unique risks that increase with the volume of insurance they sell. We understand E and O insurance coverage for insurance agents and analyze your specific situation to ensure there are no flaws in your professional liability insurance coverage.
We are keenly aware that agencies are trying to reduce costs without reducing coverage. That’s where we come in. We thoroughly review your business to develop a solution specific for you. This often eliminates purchasing unneeded coverage and replacing it with coverage that you do.
If you're a successful broker agent and just bought general coverage, you could be open to more exposure and liability. Have our team review your Errors and Omissions insurance coverage, and we’ll review every angle and help protect you and the business you've built.
Because we have signed a large book of EO insurance for insurance agents, we have favorable working relationships with our underwriters. As your agent, we can often arrange more favorable contract with carriers and provide better E and O insurance coverage solutions. niccomins.com/NICinsApp.pdf niccomins.com/NICinsApp.pdf
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