Mistakes happen, even to the best of us. That’s why there’s E&O insurance.
What is Errors and Omissions Insurance? Errors and Omissions insurance, or E&O, is a type of professional liability insurance. It is designed to protect against financial damages resulting from an error or omission you make in the course of providing life insurance to your clients and prospects. If a client files a lawsuit and you are found to be at fault, your Errors & Omissions insurance will help pay the claim, as well the legal fees that will accompany it.
If you’re a licensed life insurance agent and want to market and sell life insurance, you need E&O insurance. Any life insurance company is going to require that you purchase and be covered with an Errors & Omissions insurance policy before they allow you to get contracted to sell their life insurance products. This is to protect you, as well as the insurance company, from any court or legal fees and settlement costs that may arise from you being found liable for damages caused to a client. Being covered also ensures that you will have the means to be represented by expert legal counsel in those scenarios.
It protects your current and future ability to provide an income for yourself and your family, as well as safeguarding your personal and business assets from the exorbitant costs of judgments, settlements, court costs, and attorneys fees.
E&O policies can vary in what they cover, so it’s important to be clear on coverage limits, exclusions, deductibles, and other key details of your policy. Depending on your insurance carrier and the size of your business, you may be required to have a minimum amount of coverage per claim and aggregate. For example, if your carrier requires you to carry a minimum of $1,000,000 per claim and $3,000,000 aggregate, you’ll want to make sure any E&O policy you purchase will cover those amounts at the minimum.
At the time of purchase, you can choose if you want your E&O coverage to extend to certain products you may be marketing in addition to life insurance, like indexed/fixed annuities, variable annuities, and mutual funds, for example.
Alliance Group has access to a group rate through our partners at NAILBA that any friend of Alliance Group is welcome to take advantage of. Head to NAILBA E&O -when prompted, use the discount code NAILBA05 to receive a discounted group rate.
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