E&O Insurance is not optional for professionals in many industries. The agency or governing body that licenses them to conduct business also requires they have professional liability coverage, known more commonly as Errors and Omissions Insurance.
Failure to maintain qualified professional liability insurance may result in suspension or revocation of your license plus an administrative or monetary penalty.
Separately, many third parties that contract with skilled professionals require they maintain minimum levels of professional liability coverage. Financial institutions, insurance companies, large contractors or even some clients want proof that you carry and maintain minimum levels of E&O insurance. If you don’t, you’ll not only miss some of the bigger and more lucrative opportunities, you’ll look less professional than your competitors.
A Better Reason to Buy E and O Insurance
Even if your profession is not mandated to have professional liability coverage, the benefits of doing so are important for you and your employees as well as clients and customers.
Your General Liability coverage, which is separate, specifically excludes claims for giving bad advice or harming someone in the course of providing professional services. Professional Liability coverage, on the other hand, protects you from professional mistakes you or your employees make that lead to physical or financial harm to your clients and customers.
Protecting your assets with E&O coverage is a very affordable way to mitigate any damages that might occur unexpectedly. It also is an inexpensive way to add more professionalism to the important work you and your team already do.
Choosing Your Professional Liability Coverage
We empower professionals to buy what they need, not more, not less. So typically, professional liability insurance has two limits – a maximum amount that applies to to any single occurrence (the individual limit) and another maximum amount for all occurrences in a given year (the aggregate limit).
For example, a common policy design has a $1 million per occurrence limit and a $2 million aggregate limit, per year. Often deductibles must be met out of pocket before the policy starts paying for damages.
Low-cost E&O Options for Life and Health Agents
Our basic policy for Life and Health Agents is $454 and adding coverage for additional business lines is easy and affordable. With a few clicks, Agents specify whether to add E & O coverage for selling fixed and indexed annuities; variable products or mutual funds; or disability income insurance. Or all three if they need them.
We empower professionals to buy what they need, not more, not less. So carefully work through possible business scenarios, evaluate your risks, and determine the levels of coverage and any additional features that you need to have in place.