Insurance Agents Professional Liability (E&O)

Insurance Agents Professional Liability (E&O) Insurance provides protection to insurance agents or agencies. It is vital to protecting the agent or agencies hard-earned assets and reputation.  These agents or agencies need protection from any legal action resulting from negligence in providing or recommending insurance to their customers.  For protection against such claims, it is important to obtain professional liability insurance to provide financial restitution when held liable for errors, omissions, professional negligence, or other service related risks.

Despite being in the business of protecting others from financial loss, the insurance industry is not exempt from the risks associated with providing a professional service. When the loss of a client is brought to court over improper evaluations, legal fees can be costly to your agency.  In addition, most insurance carriers require licensed insurance agents and agencies to carry E&O insurance in order to sell their insurance products.  Most any type of Insurance Agent or Broker can be covered:

  • Life & Health Agents
  • Property & Casualty Agents
  • Commercial Lines Agents
  • Wholesale & Surplus Lines Brokers
  • Insurance Consultants
  • Managing General Agents (MGAs) & Underwriters (MGUs)
  • Program Administrators

Sample Policy features and benefits we can include, but not limited to:

  • “A-“ Rated or better, admitted carrier
  • Hard to place risks available (claims history)
  • Defense costs outside the limit
  • First Dollar Defense
  • Broad Definition of Professional services  – insurance broker, insurance agent or general agent
  • Personal Injury Coverage
  • Limited EPLI coverage available (depending on carrier)
  • Cyber liability coverage can be included
  • Punitive Damages Coverage where insurable
  • Subpoena & Disciplinary Proceedings Coverage

Here are some examples when an Insurance Agent, Agency or Broker may need E&O Insurance:

  • Additional insured endorsements are also at the heart of an increasing number of E&O claims. For example, using the wrong endorsement type, neglecting to inform the insurance carrier of the addition of the endorsement to the policy, or improperly noting the endorsement on certificate of insurances.
  • The misuse of Certificates of Insurance, with producers completing forms improperly. For example, claims have resulted due to the use of improper language, not listing accurate policy limits, not listing required exclusions/conditions, not listing additional insureds properly, and/or not mailing the certificates to insurance companies.
  • In another claim situation, the broker allegedly procured insurance that failed to provide coverage under a property policy for damage caused by chemical contamination. The claimant argued that prior property policies covered this kind of loss.
  • A claim alleged that the broker did not fulfill its obligations to the claimant in that the insurance for a garment industry fire loss was inadequate. The claimant argued that a higher limit should have been recommended.
  • The failure to offer Flood Insurance coverage, failing to properly explain how flood coverage works and offering excess flood insurance. Recent devastating storms over the last several years that have affected areas not typically hit by flood, the expense of flood coverage and other factors have been made this a front-and-center issue.

Hirsch Insurance Brokerage has the knowledge, resources and industry relationships to build an insurance solution that meets the unique needs of insurance agents and brokers.  We offer our exceptional service guarantee combined with a vast selection of Professional Liability (E&O) Insurance products to meet your business needs.  Our products offer broad coverage and competitive premiums, to ensure we are staying ahead of our competition while putting our clients first.  Remember, not all E&O policies are created equal and neither are the insurance carriers.  Let our experience make the difference for your business.