As an insurance provider, you understand why it’s important that your business clients have professional liability coverage to protect them from claims due to errors and omissions in work product. The financial impact of an uncovered claim for negligence or mistakes can threaten the health of a company. This coverage, also known as E&O, protects your clients and helps manage the risk of creating a product or other deliverable. This is a well-known type of coverage for businesses. Who’s watching your back?
Understanding E&O Protection for Insurers
Errors and omissions insurance coverage for insurance agents is crucial as it protects companies and staff that are responsible for client advice, policy service and offer coverage to businesses. You may be subject to a lawsuit from a client, but also other third parties such as a lender, a certificate holder, and other insured parties. Here’s what you can expect from an E&O policy for an insurer:
- Legal defense, including disciplinary and subpoena
- Indemnity and claims settling
- Reimbursement of expenses associated with work interruption
- Privacy and/or security breaches
Finding the Right Solution
As an insurer, you understand that not all policies are created equal. This is mostly because clients have specific needs based on the type of work they do and the risks therein. Similarly, you should look to work with a provider that has a demonstrated track record of working with insurers to find the right level of tailored coverage.