Almost 1 in 7 insurance agents will be involved in an Errors and Omissions claim at least once during their career.
Insurance agents are one of the most commonly sued professionals, making the need for professional liability insurance coverage necessary.
When offering services to any client, there's always the potential to make a mistake that results in a lawsuit being brought against you.
Here are just a few examples of professional liability claims that insurance may face:
- Not maintaining detailed client records
- Omitting important client information
- Misrepresenting or falsely advertising information to clients
Liability issues often arise from what started as a simple mistake, such as a misunderstanding with the client that leads to the unintentional omission of information. This often results in an accusation of negligence and a lawsuit with significantly costly damages.
Misrepresentation is another common claim. These types of claims arise when an insurance agent misrepresents information to their client, such as selling them unnecessary coverage.
A lawsuit could also be brought against insurance agents include that offer comprehensive coverage without informing the client of coverage gaps, or failing to provide proper documentation of their policy.
In order to protect against these different situations, it’s crucial to invest in professional liability insurance coverage.
PLRisk Advisors is a leading wholesale insurance brokerage covering insurance agents and brokers nationwide.
Our team of seasoned professionals has the depth and breadth of knowledge to help our agency partners secure the best quality coverage for themselves and their clients. Please contact us today at (855) 403-5982.