An understanding of Agent’s E&O Insurance is critical for any insurance agent. It is a form of “malpractice” insurance. It is separate and very different from Commercial General Liability insurance, because Agents E&O Insurance covers the insurance professional in his/her/its activities as an insurance professional. Commercial General Liability insurance does not cover professional liability claims and furnishes no protection for you for those types of claims. You are risking you own assets, present and future, if you do not have this kind of coverage
An Agents Errors and Omissions
insurance premium rate is based primarily on three factors.
1. The agents annual premium
volume.
2. The agents experience in
writing the lines of business he or she sells.
3. Previous claims history (The
frequency of prior mistakes).
In general, The more volume
production, the greater the likelihood of making a mistake.
Likewise, the more experience an agent has in his line of
business the less chance of a mistake.
