Errors and Omissions Insurance Is Critical for Insurance Agents

In many fields, errors and omissions insurance is critical. This is particularly true for insurance agents, brokers and even lawyers. E&O insurance is what is going to protect your business if anyone files claims against you for negligence due to errors.

Common Allegations

New York E&O is the best safeguard you can invest in to protect your agency’s assets. Mistakes happen and you don’t want to break your company paying out litigation expenses. In the insurance industry, here are some of the most common allegations that you may have to face:

  • Failed to explain policy exclusions
  • Failed to handle claims correctly
  • Failed to advice clients about penalties
  • Negligence in representation of coverage
  • Failed to procure appropriate coverage

Even if you think that the claim is false, you have to be able to fight against it. Errors and Omissions insurance, you might not be able to without digging into your own finances. When it comes time to contest a claim, you are going to want your insurer on your side.

When it comes to New York E&O, it is vital that every insurer carries it. You never know when you’re going to have to fight against a lawsuit. For companies that aren’t covered, they don’t have the proper protections. After all, mistakes happen and so do lawsuits.