As an insurance agency, your biggest concern is insuring your clients. Do not make the mistake of focusing less on your own insurance coverage. Every agency should have insurance agent E&O insurance. Here is why you shouldn’t skip out on E&O coverage.
Why Scaling Back on Insurance Is a Mistake
All companies want to save money, but you should never cut back on insurance to reduce your expenses. When you scale back on insurance, you could break your company if you face a lawsuit. For example, if you do not have error & omissions coverage, what will you do if someone files a claim against your company?
Unsatisfied clients may claim that your agents did not fulfill their professional duties. Even if you think that the allegations have no bearing, you still have to fight the claim legally. Paying for the cost of litigation, settlements and to restore your reputation can damage your company.
How to Protect Your Agency With E&O Coverage
E&O coverage protects you against mistakes, bad advice or acts of negligence. For example, if a client does not understand his or her insurance plan or the benefits of the purchase, he or she may eventually file a lawsuit claiming professional negligence. With E&O coverage, you can pay to fight a lawsuit and pay the settlement cost.
Insurance isn’t only critical for your clients. You should make sure that your company is properly insured also.