E&O insurance for agencies is a safety net to protect you and your business. While it may seem like a financially stressing and taxing expense to bear, the benefits it holds when you get into a legal pickle with a client is worth it. Get more information regarding E&O insurance for insurance agencies: https://www.agencyheight.com/e-and-o-insurance-for-insurance-agencies/

1. E&O Insurance for Agencies
Vital Aspects To Know

2. What is E&O Insurance?
• E&O insurance for agencies is a type of liability insurance.
• Errors and omissions (E&O) insurance helps protect your business against
lawsuits related to mistakes in work that your company provides.
• It covers costs related to court fees and any settlements as
mentioned when an insurance contract is issued.

3. Who Needs E&O Insurance?
• E&O insurance is recommended for any professional company
with employees. Some professionals who could benefit from this
insurance are:
• Digital marketers
• PR firms
• Graphic designers
• Insurance agents

4. What Does It Cover?
• Negligence
A customer can claim that your service was
inadequate.
• Professional Errors
As an agency, you and your employees can make
mistakes that can lead to a lawsuit from a client
who claims they've been harmed by your errors.
• Inadequate Services
If your business fails to provide the professional
services you guaranteed, you could face a lawsuit
from the client.
Note: E&O insurance also often handles issues
related to copyright infringement or other
violations at the federal level.

5. How Much Does E&O Insurance for Agencies Cost?
Generally, the cost depends on the following factors:
• Agency size
• Business location
• Coverage limits
• Agency revenue
• Past claims history
The average annual cost of E&O insurance is $500 to $1,000
per employee. - The Hartford

6. Additional Coverage to Pair With
E&O Insurance for Agencies
• General Liability Insurance
• Worker’s Compensation Insurance
• Business Owner’s Policy (BOP)
• Employee Practices Liability Insurance (EPLI)

7. Common Claims Associated With E&O Insurance
• Lack of Communication
While working in insurance, an employee must provide the correct amount of
information and documentation to supplement it. Failure to do so could lead
them into legal trouble.
• Breach of Contract
A breach of contract can have devastating consequences. Your client
or partner could sue you if they are not satisfied that you've held up your
end of the bargain.
• Software Failure
Often, software can malfunction or fall victim to malware. Such malfunctions
to system software can cause financial losses to clients and partners. In such a
situation your agency will be liable for the damages.

8. An agency has the vital role of bridging clients and carriers which
are always tied with legal responsibilities.
E&O insurance for agencies is a safety net to protect you and
your business when it is held liable for a professional error.
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