I am new to the insurance industry and was told by an insurer I want to be appointed with that I am required to have $500,000 of Errors and Ommissions Coverage? being new I would hate to ask a company I plan to write business for what the heck is E & O coverage and how do I get it. Does anyone know the average cost of a policy?
Thanks,
2007-01-25 03:53:01 · 6 answers · asked by Anonymous in Business & Finance ➔ Insurance
E&O is for agents as malpractice is for doctors. You need to have it or you can be personaly liable if sued for any mistakes you make.
I have a L&H license & it runs about $650/yr. for $1million in coverage.
2007-01-25 04:06:06 · answer #1 · answered by ricks 5 · 0⤊ 0⤋
Errors and Ommissions coverage - for agents, it's also called professional liability. Example: you use your binding authority with a company, but forget to send the application to them in the alloted time period. Of course, there's a big auto accident, and the company denies as they have no record on file of that insured.
So, your E&O policy would pay for the accident.
This type of coverage is on a claims made basis, so the first few years are pretty darned cheap, but be prepared for increased costs as your policy goes on (typical of claims made policies). The best place to find coverage, is through your local independent agents' association. www.iiaa.org for the group near you. But I'm guessing the first year should run you a mere $3000, with a $10,000 deductible per claim.
2007-01-25 08:10:35 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
Check with the agent that set you up with business insurance and ask them if they write E&O. You will not be appointed with any other company without having it. It protects you and the company you are appointed with from being put through a lawsuit if a mistake happens.
2007-01-26 18:19:34 · answer #3 · answered by Beth G 2 · 0⤊ 0⤋
Too many factors in determining premium. What kind of professional service are you providing? How long have you been doing this? Experience? E&O covers for mistakes on your part on the behalf of others...
Ex: As an insurance agent, we must have E&O in case we don't provide proper coverages or forgot to file a claim and so forth...
Accountants must have it in the event that mess up somebody's taxes....
2007-01-25 03:59:21 · answer #4 · answered by Misty L 2 · 0⤊ 0⤋
It means Errors and Omissions insurance, my boss pays about $1,000 a year and his coverage is $1,000,000. It covers you and any employees for making any errors or omitting to make a mistake.
2007-01-25 04:40:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it is exactly what it says, errors and ommissions. its because you and your employees are human and will make errors and ommissions. this is to protect you should you ever be sued!! you NEED it
2007-01-25 03:57:36 · answer #6 · answered by Queen B 6 · 0⤊ 0⤋