January 27, 2012
2:37:00 PMPMYou’ve all heard of E&O insurance. Some of you sell it to your clients. Most of you are probably required to carry it. It is important to make sure you know what you are getting when it comes to E&O for insurance producers, whether it be your own, or for a client. 
Even the most thorough and diligent individual can make a mistake or be accused of such.
Proper coverage helps to protect you and your clients as well as your own operation. Defense costs are included for you while providing monetary reimbursement to any wrongful error or omission.
Even if a situation progresses to the point of litigation (and maybe it is dismissed at some point), the defense costs can add up quickly. It is important to consider how one costly incident can affect your operation and whether the company can sustain it to continue services.
To be an effective insurance agent, you must have an understanding of many insurance products, including your own, to deliver the best service to your clients. Service sells in this industry, and the better protected and educated you are as an agent, the better protected and educated your clients become. If a mistake is made (or an accusation of), you essentially become the insurer in the eyes of your client. Common claims arise from accusations of negligence, breach of contract, non-disclosures, etc.. and this is why insurance agents are a lightning rod for E&O claims to their own policies. Protection is pivotal.
DID YOU KNOW? : Insurance agents E&O is written on specialty form product lines which clearly address the unique exposures facing an insurance professional, much like that of a doctor, lawyer or architect.
DON’T FORGET: Financial planning activities require additional underwriting and special endorsements in many cases. If you are shopping coverage, remember to identify all relevant lines of your book to ensure proper protection in the event of a loss.
FUN FACT: Insurance salespeople are continually rated near the bottom of the list when polls of ‘hated professionals’ are conducted. Typically they are surrounded by lawyers, used car salesman, and IRS auditors in that category. Providing exceptional service, arming yourself with product knowledge, and having the best interests of your clients in mind can help change this public perception. Proper E&O is a part of the equation.
http://www.strangecosmos.com/content/item/3760.html
http://forums.officer.com/showthread.php?94086-Most-hated-profession
