Mistakes happen — even to the best of us. Fortunately, errors and omissions (E&O) insurance can help you mitigate the risks and costs that come with your profession.
The insurance for those who are selling insurance, E&O insurance can be a necessary purchase. This is especially true if you want to protect yourself from costly lawsuits.
But what is it and do you really need to buy it? We’ll cover all the basics so you can make an informed decision!
What Is E&O Insurance?
In short, E&O insurance is a type of professional liability insurance. It specifically can help financially protect insurance agents who are accused of:
- Errors
- Insurance agent negligence
- Lacking to fulfill certain promises
- Other forms of insufficient work.
Usually, it covers court and settlement costs up to the policy’s coverage limit.
Who Needs E&O Insurance?
Anyone who provides advice or services to others professionally should consider buying E&O insurance. You provide both if you’re an insurance agent, so we highly recommend you buy this form of protection.
Even recommending the wrong policy or failing to secure adequate insurance coverage for a client can leave them exposed to a major loss. When that happens, they could look to you for compensation. With E&O insurance at your side, that cost can be severely mitigated.
Anyone who provides advice or services to others professionally should consider buying E&O insurance.
Additionally, many insurance carriers require agents who market and sell their plans to hold an active E&O policy.
How Much Is E&O Insurance?
The cost of E&O insurance for insurance agents depends on who you buy it from. You probably already know that if you sell other types of insurance. An E&O policy’s cost can also depend on:
- The size of your company
- Where you do business
- Your lawsuit history
- The coverage limit
The average cost for insurance agents pay for E&O insurance start at $26.25 per month for life and health agents.
Without this coverage, the cost of a legal defense can be from $3,000 to $150,000. That kind of cost alone is enough to knock down a thriving insurance agent’s business.
If you team up with a field marketing organization, like Ritter Insurance Marketing, you may be able to get E&O insurance at a lower, discounted cost.
If you team up with a field marketing organization (FMO), like Ritter Insurance Marketing, you may be able to get E&O insurance at a lower cost. For example, Ritter is partnered with Integrity, which offers extremely competitive E&O insurance to agents using their free, all-in-one tech platform!
Save up to 50 percent on E&O insurance with IntegrityCONNECT! Get the details.
Where to Find Good E&O Insurance
If you’re searching for E&O insurance, we recommend asking your upline or FMO where they recommend buying it from. Good FMOs will have partnerships with companies who offer this form of coverage, and even offer agents discounted rates on this type of protection.
IntegrityCONNECT E&O Insurance Now Available!
E&O insurance is part of Integrity Partner Benefits Program — just another reason why agents should partner with Integrity! When you use IntegrityCONNECT — a free, all-in-one tech platform built to help you save time, sell more and supercharge your growth — you can also save big on E&O insurance!
Why choose Integrity E&O Insurance?
- Competitive Pricing — save up to 50% off the industry standard price1
- Additional coverage — including ERISA and vicarious liability for life, health and annuities.
- Cyber protection — protects you against cyber risks
- Individual limits — various policy limits per claim
How to get started:
- Log in to IntegrityCONNECT and click MyBenefits.
- Click the box to agree to the Membership Agreement, then click Apply Now for the E&O Insurance.
- Complete the form and Submit.
That’s it! Integrity will send you an email with policy details and next steps.
Note: If you’re not already set up on IntegrityCONNECT, you’ll need to be referred by a partner first. Register with Ritter to get set up today.
1Source: https://www.forbes.com/advisor/business-insurance/errors-and-omissions
The IntegrityCONNECT Association E&O Discount Program (“Program”) is offered at the sole discretion of IntegrityCONNECT Association and may be modified or discontinued at any time without prior notice. Potential savings and discounts are displayed for informational purposes only and actual savings may vary. The Program has no cash value and may not be applied to past purchases, taxes or fees. IntegrityCONNECT Association reserves the right to verify eligibility and refuse participation to any individual at its discretion. Misuse of the Program, including but not limited to resale or fraudulent activity, may result in termination of participation and reversal of any associated discounts. Participation in the Program constitutes acceptance of these terms and any additional terms or conditions that may apply.
Why Buy E&O Insurance?
If a client thinks you’ve wronged them in some way, professionally, they may try to take you to court. Even if you don’t have to pay a settlement, the most trivial lawsuits can lead to unexpected, major court costs. E&O insurance can cover your attorney and legal fees, including any settlements ordered inside of or reached outside of court.
Even if you don’t have to pay a settlement, the most trivial lawsuits can lead to unexpected, major court costs.
Nowadays, E&O insurance is practically a necessity for any business, even outside of incurring legal fees. Consider that E&O insurance is also necessary in today’s environment because:
- It shields you against common mistakes — this insurance can protect you if you accidentally write a policy incorrectly, misquote a cost, or fail to include the necessary coverage for your client.
- There are also some states where E&O insurance is required, so be sure to check that.
- It can turn a client complaint into a covered claim.
- It provides peace of mind, so you can focus on your business and your clients.
As an insurance agent, your job is to help your clients be as prepared as possible for the worst and protect them from financial risks. You could have the best intentions with a sale, but sometimes things can go sideways — especially in today’s litigious environment! You can’t forget about the importance of protecting yourself financially, from bad situations, too.
Register with Ritter for free today and explore all our E&O insurance options. You can be protected from any potential litigation that comes your way and have back-up support from a top-rated FMO like us!
Not affiliated with or endorsed by Medicare or any government agency.
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