What is Insurance Agents E&O?

Insurance Agents Errors & Omissions (E&O) Liability provides protection to insurance agents or agencies. These agencies need protection from any legal action resulting from negligence in providing or recommending insurance. Agencies for any kind of insurance can benefit from E&O insurance. Property & Casualty, Accident, Life, Health and any other kind of agency would have both similar and unique risks that can be covered with an Insurance Agents E&O policy.

Why have Insurance Agents E&O?

Professional liability is an important part for any business, including an insurance agency. Mistakes can be made while helping others find coverage, and without the right kind of protection in place, an agency would have to retain a suit or other claim which could mean having individual agents lose money on their commissions. But with an E&O policy in place, negligent acts can be covered and help to keep the doors open.

  • Insurance agents and brokers are uniquely exposed to frequent and severe claims.
  • Professional Liability coverage for Insurance Agents and Brokers is increasingly difficult to find in today’s marketplace.
  • Claims are on the rise due to the difficulty in obtaining some coverages in the hard insurance market.
  • Insurance agents and brokers are being held to a higher standard of care than ever before.

Insurance Agent E&O Claims Example

Insurance Agent

Jim places coverage through an agent who secures a standard HO-3 policy. The home is located on lakefront property. Since the home is not located in a flood zone, the agent advises that a separate flood policy is not needed and that they have adequate coverage with the HO-3. Heavy storms result in floodwater run-off from a nearby lake, which enters Jim’s home and damages the contents of his basement storage area. Because Jim alleges that his agent told him they did not have a need for flood coverage, suit is filed for damages. The insured denies these allegations. As a result, the coverage is triggered and used to defend the agent during the trial. Total amount paid including defense costs was $44,000.

Coverage May Include

  • Defense outside the limit
  • Professional services  – insurance broker, insurance agent or general agent
  • Personal Injury Coverage
  • Cyber liability coverage can be included
  • Personal Injury Coverage
  • Admitted Markets available in most states

Insurance Agent E&O Professional Liability Applications:


Available Markets