Inside Insurance Agent Professional Liability Exposures

Inside Insurance Agent Professional Liability Exposures

Insurance agents, like many other professionals, provide an invaluable service. Insurance is required for many businesses, and families seek insurance to protect their homes, assets and belongings. These people often depend on the suggestions and recommendations of their agents, who in many cases have been servicing them for years. But when their suggestions or advice lead to a costly error in judgment, and the company or individual is looking for somewhere to lay blame, it is usually the agent who winds up taking the fall.

The exposures agents face in the course of their work

 

Anyone in the business of helping others find and obtain proper insurance protection can benefit by having some protection of their own. Agents can find suitable protection in the form of insurance agent professional liability coverage. Most insurance agents, however, do not consider the risk that is involved with their profession. But there are documented cases where the recommendations made for policies, either to purchase or bypass, has led to a claim of negligence on the part of the agent.

 

Agents certainly don’t want to give bad advice or erroneous information to the people they serve. Unfortunately they cannot predict what the results will be when they do offer suggestions that they feel, at the time anyway, could be beneficial to their clients.

 

In any event, if a client feels that their broker gave them the wrong advice, or suggested purchasing, or declining, certain policies or add-ons, this can lead to litigation if the results are less than satisfactory. After all, clients facing a major problem with an insurance policy are quite likely to file a lawsuit, which could very well end up costing that agent huge sums of money if not properly insured against such actions.

 

Professional liability coverage can protect against liability as well as help to defray the cost of defense following a claim for an error, omission, or negligence in the performance of professional services. Insurance agent professional liability coverage is essential in order for agencies to remain operational and avoid paying out-of-pocket, any unfavorable claims or settlements during the course of business.

 

photo credit: Jano De Cesare cc

You may also like