--- title: Why is E&O Insurance Coverage so Important for Insurance Professionals? description: Why is E&O Insurance Coverage so Important for Insurance Professionals? --- [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) Connect with us Call us Today [(201) 847-9175](tel:2018479175) [(877) 787-5258](tel:8777875258) - - About Axis - [Our Approach](https://www.axisins.com/about-us/) - [Our Team](https://www.axisins.com/our-team/) - [Testimonials](https://www.axisins.com/testimonials/) - [Case Studies](https://www.axisins.com/case-studies/) - [News & Events](https://blog.axisins.com/tag/news-and-events) - [Careers](https://www.axisins.com/job-opportunities/) - Product Lines - [Overview](https://www.axisins.com/products/) - [On-line Quoting](https://www.axisins.com/products/on-line-quoting/) - [Surety Bonds](https://www.axisins.com/products/surety-bonds/) - [Cyber Liability/Privacy & Network Security](https://www.axisins.com/products/cyber-liability-privacy-network-security/) - 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[Subscribe To Our Blog](https://share.hsforms.com/18qZLml0MTSqtYWBFqQFAGA35dv4?__hstc=172306556.605fbd816f522e1de3e9428cb969d5b4.1580877711545.1580973215492.1580978435349.10&__hssc=172306556.3.1580978435349&__hsfp=1035641285) # Why is E&O Insurance Coverage so Important for Insurance Professionals? July 26, 2013 Axis With the recent tightening of the professional liability insurance market, insurance professionals are eager to find the most affordable [Errors & Omissions](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/insurance-agents-brokers/) coverage for their agency or brokerage. In recent weeks, insurance carriers have been bowing out of certain markets, raising premiums for life & health and property & casualty agents, and restricting coverage across the board. This has led to brokers scrambling to search for coverage with just about any carrier with the cheaper rate. Today’s E&O carriers explore many factors when determining rates for [insurance professionals](https://www.axisins.com/client-resources/apps-forms/); including level of industry experience, annual commissions, applicant location, products written, and any prior loss history. **Why E&O insurance is so important for insurance professionals?** Purchasing proper E&O insurance coverage is crucial to safeguard their brokerage or agency’s valuable assets. Like any other business, if they make a mistake as they perform their professional duties, it could result in costly litigation expenses – which could affect their ability to stay afloat. Even if the insurance agent or broker never technically makes a mistake, a client may allege that while providing their professional service, they made an error which harmed them in some way. The insurance agent or broker might be found to have done nothing wrong, but the costs of defending their business may outweigh the value of their brokerage. Some of the most common allegations against insurance agents and brokers are: • Failure to advise clients about coinsurance penalties • Negligent misrepresentation of coverage • Failure to procure appropriate coverage or adequate limits • Failure to advise of policy exclusions • Failure to handle claims properly causing carrier denial When contesting a claim, it’s suggested that an insurance agent or broker use these steps as a guide: • Establish a concrete summary of events which surround the claim against them • Identify and interview their employees for information on the underlying claim • Engage their E&O insurance carrier as early as possible • Be sure their attorney is present when they are ready to give a deposition • Be cautious about taking a position regarding the claim, so as to not prejudice either the carrier or their client If you are exploring purchasing [Errors and Omissions insurance coverage](http://www.axisins.com/products/), our professional liability insurance specialists are able to custom-build a solution for your brokerage – call us at **201-847-9175** or email [info@axisins.com.](mailto:info@axisins.com) Axis Insurance Services, LLC is not affiliated with Axis Insurance Company or its affiliates in any way. *DBA NJ Axis Insurance Services, LLC in California and Texas DBA NJ Axis Insurance Agency in New York DBA Axis Insurance Services of NJ in Illinois* [E&O](https://blog.axisins.com/tag/eo) [Javier Gonzalez to Speak at The CLM Professional Liability Mini-Conference on Friday, July 26th](https://blog.axisins.com/javier-gonzalez-to-speak-at-the-clm-professional-liability-mini-conference-on-friday-july-26th) [Insurers Making Smarter Decisions With Better Business Intelligence](https://blog.axisins.com/insurers-making-smarter-decisions-with-better-business-intelligence) Search ### Share this post [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/x-twitter-color.png?width=24&name=x-twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Fwhy-is-eo-insurance-coverage-so-important-for-insurance-professionals%3Futm_medium%3Dsocial%26utm_source%3Demail) ### Recent Posts ### Categories - [E&O (19)](https://blog.axisins.com/tag/eo) - [Cannabis (11)](https://blog.axisins.com/tag/cannabis) - [Company News (1)](https://blog.axisins.com/tag/company-news) ![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/art2.png) ### Connect to Our Cyber Hotline & Resources [Connect](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) Please see our [Privacy Policy](https://www.axisins.com/privacy-policy) to understand how Axis Insurance Services handles your personal information. 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