Errors and Omissions Insurance Search
E&O Insurance may be referred to as:
- E&O Insurance
- Errors Omissions
- Errors & Omissions
- Professional Liability
- Professional Liability Insurance
- Malpractice Insurance
Errors and Omissions Insurance (E&O)
Errors & Omissions (E&O) Insurance Resource Center
Being named in a lawsuit filed by one of your clients can be devastating, both personally and professionally. The damage to your reputation and finances can be beyond repair if a claim is not handled professionally and promptly. Don't put yourself, your business or your family at risk - secure Errors & Omissions Insurance today!
Errors and Omissions Insurance (E&O Insurance) is a type of professional liability insurance that protects you from claims arising from the sale and servicing of their products. Like malpractice insurance for doctors or lawyers, E&O Insurance helps to protect your career as an independent agent. E and O Insurance can protect your assets as well as current and future earnings, and provides expert legal representation in the event a covered claim is filed. Don’t forget: Your E&O premiums are a tax deductible business expense.
Tips on how you can prevent Errors & Omissions (E & O) Claims
Remember... Prevention Is The Best E&O Insurance
- Document and properly file ALL interactions with clients. This includes memos or all phone calls, letters confirming any and all client requests and sales presentation and application check lists signed by clients upon completion.
- Review past Errors and Omissions claims sustained by others to develop standardized written procedures that conform to all applicable laws and regulations.
- Investigate - keep written records and immediately follow up on all client complaints, no matter how trivial. Consult with legal counsel as appropriate. Report any claims to your E & O carrier in accordance with its procedures.
Do I need Errors and Omissions Insurance?
Any professional can be sued for an error or omission. Even the most diligent professional can be held liable or be sued for a professional error, omission or mistake. Errors and omissions insurance helps protect a professional both for claims relating to mistakes and claims relating to allegations of errors or omissions. Defense costs are a significant portion of the cost of an errors and omissions insurance policy. It is not uncommon for a professional to spend thousands of dollars on defense costs for a matter that ultimately gets dismissed.
Why E and O Claims Occur
- Telling your clients only what is covered and not explaining policy exclusions. Studies have shown that customers are more interested in what is NOT covered rather than what is. You should always provide specimen policies and endorsements with proposals. This will help insureds understand their coverage. This also help identify exclusions of concern. As a result, prospects may ask you to sell them additional coverage.
- Writing business in states that you are not licensed in. Know where your customer's exposures are and make sure that you have a license in all states where those exposures exist. You can't write business in a state in which you are not license.
- Selling clients what you want rather than what they need. Remember, failure to provide proper coverages in the No. 1 cause of E&O claims. Don't fall into the "renew as is" trap. Conduct an exposure analysis and offer the proper coverages. Get a sign-off on coverages they do not want.
- Giving clients the lowest limits.
- Failing to document transactions.
- Failing to understand the products you sell. When a client asks whether an exposure is covered, can you supply an accurate answer? Know your coverages. Above all, be honest.