E & O Insurance Coverage

Carriers require insurance agents to have Errors and Omissions insurance because it’s is a necessity for any professional in today's litigious society. E&O insurance policy provides coverage for claims arising out of acts, errors and omissions in the rendering of, or failing to render, professional services for others as a licensed insurance agent.

We also recommend the following Errors and Omission companies:

• Napa
• AON
• CalSurance

What is E&O insurance?

• Errors and omissions (E&O) insurance, also called professional liability coverage, insures professionals against client claims of error, omission, or negligence in the performance of their professional duties.
• E&O insurance for insurance agents and brokers provides protection against the following common client claims: that the customer was unfairly denied coverage, provided inadequate, inappropriate, or financially unsound coverage, or not properly informed about coverage changes, limitations, or termination.

Why is insurance agents E & O insurance necessary?

• Most agents and brokers are required by their insurance markets to carry E&O insurance.
• General business owner’s policies do not include professional liability insurance, covering losses and legal expenses resulting from client claims of error or negligence.
• Lawsuits against insurance agents and brokers are increasing.

What else should I know?

• Pricing and coverage for E&O insurance policies varies. Factors include the agent's or broker's size and location, the services provided, and the business's classification.
• Successfully defending an errors and omissions case requires documentation. Agents and brokers should always maintain detailed records.
• Not all client claims against insurers feature a clear-cut error or omission. Unfortunately, these claims still can be difficult and costly to defend.