Forgetting to timely pay a credit card bill means a fee, a possible interest rate hike, jump in the card’s interest rate, and, if you make a habit of it, a drop in your credit rating. Forgetting to renew your insurance agent professional liability coverage can have more serious – and expensive consequences.
A gap in coverage, even a short one, greatly increases your risk and financial exposure. It also means when getting a new Errors and Omissions policy, you’ll pay more for it.
Most E&O insurance policies are written on a “claims made and reported” basis. Your most current insurer is responsible for actions “reported” during the existing policy period, even if you were insured by another carrier at the time of the incident leading to the claim.
Maintain That Insurance Coverage
Maintaining continuous coverage is the key. Any lapse creates a gap in which no insurer is responsible for acts during that time. If you get sued for activities during that break in coverage, you’ll be on your own.
Even frivolous claims will cost you thousands of dollars to fight. And any settlements reached or court costs levied from will come out of your pocket, too. At best, your business takes a big financial hit. At worst, the costs of defending an E&O claim puts you out of business.
Professional liability coverage is an essential safety net. The cost – the basic Life and Health Agent E & O policy with Get Insured 24/7 is $454 – is nominal compared to your potential financial exposure without it.
One of the reasons Get Insured 24/7 can offer such affordable E & O coverage is because we’ve created a “preferred risk” group. This group, or pool, only includes Life and Health Agents who’ve never let their professional liability policies lapse.
So mind the gap. Don’t create one.