No matter how large or small your insurance agency is, you should have a complete insurance portfolio that provides adequate coverage to protect you from your risks. Small businesses with professionals such as doctors, lawyers, CPAs, and insurance agents need Errors & Omissions insurance (E&O). As an insurance agent professional liability insurance should be part of your arsenal of risk management.
In a study by the Institute for Legal Reform, one in three small businesses were either sued or threatened with a lawsuit during the past two or three years. Even an unfounded claim can completely destroy your reputation and business. The costs of a defense are staggering when you have to pay them out of your own funds.
The cost of a lawsuit also forces you to make increases in your pricing or prevent you from hiring new workers. You will have to devote time and resources to the lawsuit, instead of being able to focus on your business. It could also have a negative impact on your health, depending on how well you manage stress. When you have adequate insurance agent professional liability, it does remove some of these obstacles for your business. If you don’t have this type of insurance, you need to talk it over with a specialist who understands your risks. Find a solution to give you peace of mind.