What is Innocent Insured Coverage?

If you have started investigating errors & omissions insurance for insurance agents, you may have run across the term “innocent insured coverage” at some point. Some people might skip over this term without finding out much about it. Innocent insured coverage is actually something that could come in handy in protecting yourself not just from the actions of clients, but the actions of others in your workplace.


Insurance Fraud


If you are an insurance agent, you understand the problem that insurance fraud can be. It makes it worse when the insured person had nothing to do with the fraud, but the insurance company still won’t pay. Innocent insured coverage changes that. If purposeful negligence or other actions were used to get compensation from the insurance company and you had no knowledge or participation, you can still get your compensation.


What to Do if You Suspect Fraud


Some innocent insured coverage involves stipulations that you must report the fraud as soon as you find out about it. If you don’t, you could lose your compensation. If you suspect fraud in one of your claims, it’s important that you report it to your insurance agency as soon as you find out.


Errors & omissions insurance for insurance agents can help protect you even in the event of insurance fraud. As long as you do not participate in the actions leading up to the claim and report it as soon as you find out, you should still be able to get the compensation you deserve for the resulting loss.