Even the most competent companies can make mistakes from time to time, and in some cases these mistakes can result in immense financial instability. That’s why securing the right e&o insurance for agents is so important. These policies can offer protection against claims resulting from financial loss incurred by another.
What Is Errors and Omissions Insurance?
Also known as professional liability insurance, errors and omissions coverage provides protection for service providers in the event of lawsuits or other legal proceedings. Such coverage can afford funding for things like legal defenses, as well as settlement payouts if necessary. This will mitigate any financial damage to the company in question, which is crucial for continuing operations.
What Constitutes a Professional Liability Claim?
When seeking reliable e&o insurance for agents, understanding what constitutes a claim is extremely important to securing the appropriate coverage. In order to be covered by an e&o policy, claims must involve allegations of negligence related to either unsatisfactory performance or a failure to perform as expected. This coverage does not apply to instances of intentional fraud or other illegal activities, and in most cases will not afford payment for punitive damages.
Comprehensive Insurance to Suit Your Specific Needs
E&o insurance for agents goes beyond standard policies like general liability. While such policies are extremely useful, they must be accompanied by specialized coverage to ensure comprehensive protection is in place. Doing so can protect an organization from all likely risks, which is vital for continued success.