Errors and omissions happen in the course of your work as a property and casualty insurance agent. It may happen as a breach of a client agreement. Anytime an mistake happens, a lawsuit may be filed against you or your agency. When you are properly protected by E and O coverage for insurance agents and brokers, you’re shielded from shouldering the entire fees of legal defense for any claim that is submitted against your agency because of any error or omission that occurred or allegedly occurred. Statistics demonstrate 1 out of 7 insurance agents will report an EO claim at some point during their career. Today insurance agents are 4th among professions in claims filed against them. Only physicians, attorneys and accountants have more (Tillinghast Survey). Insurance agent brokers render vital services to clients thru advising them to find and obtain proper coverage. Some insurance agent brokers, though, never consider the risk involved with this profession. Advice that you make for coverage, either to buy or turndown, can come back as a law suite in the event a customer feels that you were mistaken in your judgment. Customers facing a financial loss regarding insurance coverage, or improper coverage, can lodge a lawsuit naming you, endangering your agency, livelyhood and property. Precautions you need to take concerning your profession. In the first place, your career as an insurance broker has a lot to do with the care you provide your clients. In the course of performing your duties as an broker, you may make or allegations leveled of an error or omission. Your clients could decide to recover damages legally. If your agency is not adequately covered by E&O insurance policy, you may end up shouldering the entire fees of legal defense. You can help yourself with E&O insurance for insurance agents. This is a business liability insurance device designed to protect insurance agents from whatever errors, mistakes or omission that may be alleged or committed while discharging their duties.