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Errors and Omisssions LiabilityInsurance Agents & BrokersWhy buy Insurance Agents & Brokers E&O insurance? There is no good reason NOT to purchase this coverage. In order to place insurance through many carriers, Agency E&O coverage is required. In the event that a claim is denied, a client often retaliates against the insurance agent that originally sold the policy to him or her. This results in the agency having to defend and usually pay the claim that was originally denied. For the small insurance agent, these claims can shut down business and for the larger insurance agency, these claims are still devastating. Who needs Insurance Agents & Brokers E&O insurance? Life/Health/Accident Insurance Agents Personal Lines Agents/Brokers Commercial Lines Agents/Brokers Managing General Agents/Brokers Adjusters* *may be written on a Miscellaneous E&O policy form Claim An insurance agent received a notice of claim and copies of a lawsuit filed against an insured client. The agent prepared a fax to the insurer and left it for an assistant to send out. The fax was put in the fax machine but did not actually go through, and the documents were put in a claim file and filed. The fax confirmation was never checked to ensure that the fax had gone through to the correct number. Approximately 30 days later the insured called requesting the status of the claim. The agent discovered that the claim had never been received by the insurer and faxed the original claim notice and lawsuit. However, the plaintiff had filed a motion for default in the meantime, and the default had been granted in the amount of $ 1,250,000. The insurer immediately assigned counsel and filed a motion to overturn the default judgment. The motion was denied and the insurer and client have each brought an E&O claim against the agent. Click here to download an Insurance Agents & Brokers E&O application and send your submission to PLUS today! |
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