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June 11, 2022

Last Updated on June 13, 2022 by Pichada Wangsangthong

Like any professional, it’s crucial that you have the necessary protection against possible claims against you. As a Life Insurance Agent, your clients rely on you to accurately inform them about coverage benefits after their death. Even if you have a clean track record, one mistake can lead to many expensive problems. Learn how Life Insurance Agent E&O Insurance can save you from headaches and lawsuits.

Life Insurance Agent

These agents are tasked with providing information regarding Life Insurance policies and their benefits to clients. They have to go through LLQP courses and examinations before they can acquire their license.

Usually, these agents will be the middle person between the client and the insurance company. They specialize in selling life policies that pay out upon the insured’s death and annuities, which pay upon their retirement. Learn how you can become a life agent.

Why PEople Purchase Life Policy

You can think of life insurance as a form of financial planning. Most people will purchase a life policy to provide security to their beneficiaries. In the worst-case scenario, the beneficiaries will be financially safe when something happens.

Also, one great thing about the policy is that it’s non-taxable at a person’s death. Beneficiaries can use the payout towards mortgages, student loans, and more.

What is E&O Insurance?

E&O stands for Errors and Omissions, a type of professional liability insurance. Individuals buy this insurance policy to protect themselves against negligent claims, errors, or failure to provide adequate services. E&O can also protect companies as well as their workers.

Professionals in many fields need this policy. These include consultants, insurance agents, lawyers, financial advisors, realtors, and even small business owners.

Life Insurance Agent E&O Insurance

Since Life Agents provides professional advice-giving, you can be held liable for millions in damages. Without proper protection like an E&O policy, you can expect to pay a lot out-of-pocket.

As a professional, the last thing you want to happen is a legal battle. However, anything can happen, and your client can accuse, sue, and take you to court for any reason real or imagined. Life Agents should buy E&O as it covers claims including court fees and settlements up to the policy limit. Here are the three main reasons to carry an E&O policy.

Negligent Claims

Professional negligence is one reason for a claim against a Life Agent. Your client may accuse and sue you for inadequate coverage or failure to explain coverage (other than it being a legal requirement).

Professional Errors

Mistakes can occur on the job – no one is perfect. If you make an oversight or a mistake on the policy, your client may sue you.

Failure to Provide Adequate Services

Like any service provider, your clients will have expectations of your services. If you fall short of their expectations, you could be on the other end of a lawsuit.

Summary

As an insurance professional, you should strive to provide the best service for your clients. Yet, you should also be mindful of potential claims against you should anything happen. Make sure that you have an E&O policy. Get the coverage you need to shield yourself from errors, failures, and negligence claims.

Jacques Wong is the CEO and Director of Education at PNC Learning. An award-winning licensed insurance broker with over 15 years of experience in both education and the insurance industry, Jacques is recognized for his expertise and effective communication strategies. He achieved the highest provincial scores on his CAIB* 3 and CAIB* 4 exams and contributes to leading insurance publications. Jacques is dedicated to making insurance knowledge accessible for everyone through his unique approach and online content.

Jacques Wong

 Jacques wong

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