Is E&O insurance for insurance brokers necessary? As a new business owner, it can be difficult to know exactly the type of liability insurance you need. With so many options available on the market, it’s highly possible to end up with the wrong coverage which can leave you open to unnecessary financial loss. Here are two types of liability coverage that you should be sure to understand.
General Liability Insurance
Probably the most common type of business insurance coverage, general liability insurance covers your business in case a third party is hurt, or their property is damaged, by your business activities. This can range from your electronic widget causing a fire in a customer’s home to a vendor getting hurt on your property. Your policy will cover any legal fees related to a lawsuit including attorneys’ fees, settlements or judgments.
Errors & Omissions Liability insurance
Also known as professional liability or malpractice insurance, E&O insurance covers your business against lawsuits resulting from your services and advice. It’s most commonly known as a required coverage for medical practitioners, but other individuals in independent consulting positions should carry E&O insurance as well. Other professionals who can also benefit from E&O coverage include:
- Technology consultants
- Real estate professionals
- Insurance professionals
- Business consultants
So, although E&O insurance for insurance brokers may not always be required by law, you should certainly carry liability coverage to protect yourself from financial risks. Even as an insurance professional, you never know when you’ll be the subject of a lawsuit.