Below Are 5 Exclusions to Professional Liability Coverage.

Exclusions in an insurance agent’s e&o policy. EO insurance is necessary for your insurance business but what exactly does it cover. It also only covers lawsuits filed against your business by clients. These laws vary from state to state but in general agents must fulfill the wishes of their clients and communicate if theyre unable to do so.

Leave a comment Many agents question the applicability of an insolvency exclusion under an Errors and Omissions policy. EO insurance has exclusions that limit the scope of its coverage. Moses Nwaigwe sued Prudentail and its agent William Eckert for failing to disclose a policy exclusion that the company used to deny a claim.

Insurance agents and brokers typically do not expect their EO policy to cover claims for bodily injury and property damage BIPD however they do expect their EO policy to cover claims for wrongful acts in placing or failing to place insurance policies on behalf of their clients. What can agents do when working with ES markets to reduce the chance of an EO claim. For example it wont pay for lawsuits that allege discrimination or abuse against clients.

Make sure that you know your coverage in case the worst does happen. Expectations are high and if your business fails to perform its professional duties you could face a lawsuit. As a liaison insurance agents connect clients with insurance providers and lenders.

Even if I do not misrepresent a product but a client alleges I did no. Most Insurance Agents EO policies contain some type of exclusion for bodily injury and property damage claims. As an insurance provider youre constantly providing advice to others but you need to understand your own insurance policies as well.

If you file a lawsuit against a client who refuses to pay you EO wont provide coverage. Every EO policy is different so its important to carefully read your policy to understand coverages exclusions limits deductibles and other key policy considerations. Most importantly you should always know what is excluded from your insurance policy and make a conscious decision that the restriction is acceptable for your business.