Information About Errors And Omissions Insurance For Health Insurance Agents

Protect Your Home and Assets

Errors and omissions insurance for health insurance agents, or E & O insurance, is a very important coverage to have. It is much like malpractice insurance for doctors or lawyers. Basically, this covers any claims made by a client who alleges that misinformation or omission of information on your part led to harm to the client. It can be very unwise to go into practice without this type of coverage.

Why E & O is Important

It is unrealistic to think that you will go through a lifetime of business practice without one client alleging a claim against you. There is always a possibility that you will make a mistake, or at least that someone will claim you have. If this happens and you are not adequately covered, you can be hit with a fortune of court costs and profit loss, even if the claim is eventually proven to be groundless. Individuals and small businesses can even go bankrupt in these cases.

When to Buy Coverage

As with any other type of insurance, this is important to purchase sooner rather than later. You don’t wait until after you have an accident to purchase automobile insurance, or until after you are terminally ill to invest in health insurance. This works on the same principle. As long as you are working with clients you will be at risk, so do not wait.

What to Look For

Remember that E & O claims are not covered under general liability, and often require specialized or expert information in order to effectively defend against a claim. Make sure that the company you purchase from has expertise in both the fields of E & O and health insurance. Also, there are multiple ways in which it is offered, so make sure you know the specifics of your policy. Some policies, for instance, will only cover claims that initially occurred during the effective period of the policy, regardless of when the claim is made.

Errors and omissions insurance for health insurance agents is very useful. It can save an individual or company from severe financial loss or even ruin and you should never go without it.