Insuring other businesses is an important job. Of course, though, there are various risks involved, especially in a profession where you must manage another business’s money and financial needs. Covering your own insurance agency E&O with a professional liability policy can protect your own business if someone you insure claims you’ve cooperated in improper business practices that have harmed their business.
What Is E&O?
Standing for Errors & Omissions, E&O policies cover a business in the case of wrongful actions or handling at a professional level. When a business is personally in charge of financial aspects of another business, they can often be blamed for financial losses. Businesses insured by your agency, for example, may be able to say that their coverage handled less than it could have due to your agency’s fault.
What Claims Are Covered?
Regardless of whether or not your business is truly at fault, insurance agency E&O can handle the legal fees involved. This includes court and lawyer costs. Being able to cover the financial aspect of mistakes is important for any business, as many people may make false claims and accidents also do happen. Handling the legal aspect of an E&O claim can be financially devastating, and with so much at risk when handling insurance coverage, insurance agencies can have a lot at stake. Insurance agency E&O can prevent such issues.