Do Insurance Agents Need Insurance?
Category : Do Insurance
In the same way that a surgeon cannot operate on himself, those in the insurance industry must also find an insurance company to protect them from financial risks. One of the primary coverages is insurance agent E&O, also known as professional liability.
What Is Errors and Omissions Insurance?
An insurance agent is a trusted professional who helps people navigate the complicated world of insurance by advising they purchase policies to mitigate their financial risks. If clients claim an agent gave them bad advice, an errors and omissions policy covers the expenses associated with legal defense. It also reimburses the client if the agent is found to be at fault.
Who Is Eligible?
The word agent is a general term that means anyone who acts on behalf of another person. Because most people lack the expertise needed to make good decisions about insurance policies, an insurance agent selects coverage for them. Other job titles eligible for insurance agent E&O include the following:
- Managing general agent
- Surplus line broker
- Program administrator
With so many policies at their fingertips, it may seem that insurance agents do not need insurance for themselves. An errors and omissions insurance policy, however, is not just required by law, but also is a smart way for agents to protect themselves.