How Health Insurance Agents Benefit From E&O Insurance

As hard as we work and as diligent as we are, we all make professional mistakes once in a while. For independent health insurance agents, while it can be as simple as failure to keep abreast of administrative tasks such as policy renewals and informing a client of policy changes, these mistakes, while rare, can be costly for your business and your reputation. 

Administrative mistakes aren’t the only reason a claim could be brought against you. Other examples of claims that can be brought against health insurance agents can include, but not be limited to: 

• Failing to ensure a client has the right coverage and continues to have the right coverage
• Not making sure a client fully understands the coverage
• Not providing the insurer with the correct information  
  

Errors and Omissions Insurance, also known as E&O Insurance, can help give you peace of mind. You'll know you're protected from lawsuits and professional liability claims that can cost you time, money and the professional reputation you've worked so hard to build. 

A low-cost E&O policy is a better alternative to losing a lawsuit down the line. With affordable options at a discounted rate, you'll get the protection you need for the price you want. 

Why E&O Insurance?

There are several benefits to independent health insurance agents for purchasing and maintaining E&O insurance. Here are few of the primary ones:

Protection Against Legal Action

As an independent health insurance agent, you can be susceptible to legal action. Your job is to connect insurance providers with their clients. You could face a lawsuit if their expectations are not met or your business doesn't do its professional duties. 

Clients can and do sue over mistakes and oversights, even if unintentional, which can lead to significant losses. In the worst-case scenario, you could even lose your business. Even if the lawsuit turns out to be frivolous, your legal bills can pile up quickly. You could find yourself facing court-ordered judgments or out-of-court settlements. 

With E&O coverage, you can help pay these bills and experience significantly fewer losses.

Limiting Financial Harm

As an insurance professional, it's easy to think that you're immune to frivolous claims or accusations of professional negligence. But when a client claims that your advice caused them damage, you face the prospect of a long, costly process of defending yourself in court. 

An E&O insurance policy reimburses you for the cost of hiring an attorney to defend your work and your hard-won reputation. It protects your business if a client feels your professional work didn't meet their expectations or caused them financial harm, whether or not you made a mistake. It also can provide coverage for a wide variety of situations, including giving incorrect advice and missed deadlines.

Staying Compliant

Some carriers require agents to have an active E&O policy. It can open doors to new business by ensuring you're compliant with their policies. Or, maybe you live in a state where independent health insurance agents are required to carry a certain amount of E&O coverage.

What to Know About E&O Insurance

Insurance agents generally pay  an average of $45 to $59 per month for E&O insurance, but your rates may vary depending on your risk. It all depends on a number of factors, starting with your desired amount of coverage. If you ask for $2 million in coverage, you'll pay more than if you ask for $1 million in coverage.

Risk Factors

Your business size matters, too. If you have dozens of agents making important decisions for hundreds of clients every day, the likelihood of their making a costly mistake will go up, and so might your rate. 

A health care insurance agent may pay more than an agent who works in a different industry area. Do you have a history of lawsuits? E&O agencies will look at your claims history to determine how much to charge. 

Furthermore, consider the location. Some states require that businesses carry a certain amount of Errors and Omissions coverage. Additionally, areas with higher-than-average claims might have increased rates.

Claims-Made

One thing to know about E&O is that it's a claims-made policy. Your policy must be active both when the incident happens and when the claim is filed to receive benefits. That means that if you switch from a full-time job to a freelance job or vice versa, you'll need to keep the policy if you want coverage for your past work. 

What It Might Not Cover

Just as you should know about what types of coverage E&O offers, you should know about what it generally doesn’t not cover (many of which have separate insurance policies you can purchase). These can include, but are not limited to: 

• Physical damage to your property
• Bodily harm your business might cause
• Unlawful acts and purposeful wrongdoing
• Cyberattacks 

Why a CareValue-Sponsored Program?

With CareValue's sponsored E&O program from CalSurance, you can get a quote right away and find out exactly how much you'll pay for E&O insurance and what it will cover. You can get an affordable, comprehensive plan from a top-rated carrier with the benefits you need at a competitive price. You might even be covered for contracts that aren't through the program.

Besides low rates, you get multiple coverages and limit options, and the ability to pay on the installment plans. When you enroll online, your certificates of insurance are issued immediately. Plus, enjoy optional coverage for P&C Personal Lines insurance and EPLI (wrongful termination).

Get a quote online today or call to speak with a licensed agent who can help you customize an E&O policy that works for your needs and budget.