E&O Insurance for Insurance Agents
Our agency provides errors and omissions (E&O) insurance to insurance agents, brokers, and agencies who offer any type of P&C, life, health and accident coverage.
We have access to multiple carriers and can secure E&O insurance for any type of risk, from the simple retail agency to the more complex general agency.
Even if you're having difficulty finding coverage because of your specialty, a history of claims, or bankruptcy, we can help.
This website is designed to provide you with information regarding the products we offer and easy access to our applications.
If you're looking for coverage for professionals other than insurance professionals, please visit our other website www.cbspecialty.com
To request quotes, please first verify that we operate in your state (see list below).
Complete an application and return to us. Do not hesitate to call us if you have any questions.
We operate in the following states:
Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina,
North Dakota, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming.
What types of insurance agents can you provide E&O insurance to?
We can provide E&O insurance to all types of agents and brokers, including:
- Experienced P&C Agents - Premiums starting at around $1,400
- New P&C Agents - Premiums starting at around $1,900
- Life, Accident & Health Agents - Premiums starting at around $700
- Bail Bond Agents
- P&C Wholesalers
- Life, Accident & Health Wholesalers
- Reinsurance Intermediaries
- Life Settlement Brokers
- Life Settlement Providers
P&C agents are considered to be experienced when they have been licensed for at least three years.
Wholesalers are an intermediary broker between the retail agent and the insurance company and are often used to access the surplus lines market.
Managing general agents manage specific insurance programs on behalf of insurance carriers and have binding authority.
Reinsurance intermediaries are brokers who help negotiate and secure reinsurance contracts between the ceding company and the reinsurance company.
Life settlement brokers negotiate life settlement transactions between owners of life insurance policies and life settlement providers.
Whether you're an experienced or a newly licensed agent, we have a market for you.
We also provide errors and omissions insurance to the less common types of licensees, such as credit insurance agents, limited lines travel insurance agents, motor club agents, portable electronics insurance agents, rental car agents, and self-service storage agents.
Why is it important for agents to have E&O insurance?
Insurance agents face significant exposure to professional and malpractice claims, including the following:
- Failure to recommend the proper product
- Failure to bind or renew policy on time
- Failure to recommend adequate policy limit
- Failure to provide correct specimen policy for review
- Failure to disclose policy exclusions
- Failure to disclose material information
Being an insurance agent entails a high level of risk.
Insurance agents are expected to place the right coverage at the right time, to process the paperwork and payments correctly, and to satisfy the requirements of both the policyholder and the carrier.
Policyholders rely on their coverage to protect them when they need it.
Carriers expect to be paid on time and to have had all relevant facts disclosed to them on the application.
It is estimated that one out of eight agents will report an errors and omissions claim to their carrier each year.
The cost to defend such claim and to pay damages can be devastating to an agent or agency.
Claims against insurance agents mostly arise from policyholders but can also arise from the carrier with which the agent places business.
Errors and omissions claims arising from policyholders will typically be based on a claim which was denied or only partly covered by the insurance company.
Policyholders often try to recover the difference from their agent.
Errors and omissions claims arising from a carrier with which the agent places business are usually based on the failure to follow binding authority agreement, failure to follow underwriting standards, failure to provide information to carrier prior to binding, and failure to non-renew or cancel coverage.
Also, agents are usually asked by their carriers, managing general agents, aggregators, and wholesalers to provide proof of E&O insurance.
What coverage does an E&O policy provide insurance agents?
E&O policies typically provide coverage for defense costs and damages resulting from a negligent act, error or omission committed by the agent in rendering or failing to render professional services.
The policies are typically written on a claims made form.
Claims made policies provide no coverage for claims resulting from an act, error, or omissions which took place before the retroactive date.
It is therefore important that insurance agents keep the same retroactive date at each policy renewal.