Errors & Omissions for Insurance Agents

Who this coverage is for

Insurance agents need E&O for the same reason their clients need it — a single failure-to-bind claim can wipe out a year of commission revenue. The most common claims involve coverage that was requested but not bound, requested but not properly endorsed, or recommended at a limit that proved inadequate after a loss. We schedule agency owners, producers, and sub-producers on the policy with prior-acts coverage so historical placements remain covered when you switch carriers.

Common claim examples

• Customer requested a coverage; agent did not bind; loss occurred during the gap
• Recommended limit proved inadequate after a covered loss; client alleges advice was negligent
• Endorsement request not processed; claim denied for missing coverage
• Renewal lapsed; client alleges agent failed to notify them of the renewal
• Sub-producer placement; agency-of-record looked through to the principal agency

Claims-made structure

Professional liability is almost always written on a claims-made basis. The policy responds to claims first reported during the policy period (or extended reporting period) for incidents that occurred on or after the retroactive date. This is the opposite of occurrence-based GL — and the difference matters enormously for tail coverage when you change carriers.

Retroactive date and prior acts

The retroactive date is the earliest date for which a claim can trigger the policy. When you switch carriers, you typically want the new policy to honor your prior retroactive date so claims for old incidents (reported during the new policy period) are still covered. We confirm prior-acts coverage during the quote so there is no gap on your historical work.

What this coverage does NOT cover

• Bodily injury or property damage to third parties — that is general liability
• Employee injury — workers compensation
• Vehicle accidents — commercial auto
• Damage to your office or equipment — commercial property
• Intentional or fraudulent acts
• Claims arising before the retroactive date

What affects your premium

• Years of professional experience
• Annual gross billings or commissions
• Largest project value or transaction size
• Existing claims and prior incident history
• Use of subcontractors or sub-producers
• Coverage limits desired (commonly $1M, $2M, or $5M)
• Retroactive date desired (further back = higher premium but tighter coverage)
• State of operation and licensing status

Frequently asked questions