How Much E And O Insurance Do I Need
An errors and omissions is one of the commercial insurance. It is a professional liability insurance that protects the business from financial damages to the third party. Most errors and omissions insurance policies cover for legal costs such as judgments, settlements, and defense costs. As an insurance agent who has started their own agency really need an E&O insurance. Also, if you want to know how much e and o insurance do I need then read ahead.
How much E and O insurance do I need?
An errors and omissions insurance can save a lot of hassle to your business. It wont let your insurance sales to plummet. If you want to know how much e and o insurance do you need then these steps may help you figure out.
- Assess if you need an E&O insurance or not: As a financial advisor, you do need an errors and omissions insurance. Anyone in the financial service industry needs one. Even if you have the most efficient employees there can be a minor mistake. That minor mistake can cause a lot of damage. You can get many leads for insurance once you list yourself in an agent directory.
- Check your financial situation: Assess your current statements and finances. Check all the value of the assets and the income you own. If you get a better picture of knowing what you lose then it might convince you getting one.
- Think about the losses you could incur: Assess about how much loss you could incur if there was an error or negligence from your side. Next, think about the number of transactions per year. It is ideal to get claim limit as much or above the transaction amount. You could multiply the aggregate limit (total of maximum amount you could lose per transaction) in to number of transactions perform per year. This can help you determine how much e and o insurance you may need.
Therefore, you can pay the full insurance claim as you set the limit while getting E and O insurance. If you want to know how to become an independent insurance agent then you should know getting E and O insurance can protect you and your business’ financial liability. In the end, you have to choose much insurance you want. Make sure you make prior decisions and proper assessment before purchasing a policy.