It’s the job of an insurance agent to advise customers—individuals, families and businesses—on insurance policies, including the recommendation to either purchase or pass on a particular product. The act of offering financial advice, however, can be a liability if a customer later decides that an agent’s judgment was misguided. In fact, insurance agents are among the top five most often sued professions.
Why do customers sue insurance agents? Customers may find a major problem, which ends up costing them more money than expected, with a policy that an agent recommended (or they find that they needed a policy that an agent recommended against). Customers can also claim that an agent was negligent or made errors and/or omissions while offering advice or writing a policy. If such a problem exists, or is perceived to exist, a customer can sue for the damages done, which can jeopardize an agent’s career, income and even his or her personal assets.
Nearly one in seven insurance agents will be involved in an errors and omissions (E&O) claim at least once during their career. However, an agent equipped with an E&O insurance policy is better prepared to handle such damages. How? An E&O policy protects insurance agents from claims, both grounded and frivolous, that arise from their personal involvement in the sale of an insurance product.
An E&O insurance policy helps cover the costs of legal expenses, including lawyer fees and any settlements owed. Without this valuable coverage, just one lawsuit filed against an agent could have financially detrimental effects on the agency. And, of course, any good insurance agent knows about and understands why this coverage is so important.
Get the coverage you need. Call The Weimer Group at 877-791-1707 for more information on Philadelphia E&O insurance.