Insurance agents have a tough job. There are endless piles of paperwork and even the smallest error could change the benefits that a client gets by thousands of dollars or more. As these errors would fall under the insurance agent’s responsibility, the client who had the mistakes could potentially sue for the difference in the amount that he or she received. Having to pay the difference out of pocket may not even be possible, depending on how much the error changed the amount. One way that you can protect yourself against these situations is by purchasing errors & omissions insurance for insurance agents.
There are actually many different career fields that could benefit from errors & omissions insurance for insurance agents but obviously the agents themselves should always have protection. You would typically think that an insurance agent could write his or her own errors and omissions policy, but some insurance companies do not allow this. The company may require that you choose a different agent or a completely different company if the one that you work for does not offer that type of insurance policy. You will likely have friends and acquaintances in the business that you could have write you the policy, but if you do not, make sure you do some research into the different agents in your area, as you want to find the best.