If you are a managing general agent or managing general underwriter, you can’t ignore MGA MGU insurance. One of the most important coverages to have is an Errors & Omissions policy.
Reasons To Carry E&O Coverage
As an MGA or MGU, insurance carriers and agency retailers depend on your expertise. Retailers require you to help them create a profitable business and protect their insureds simultaneously. You have to balance both priorities and if you make a mistake, you could be held accountable for any monetary loss. On top of monetary loss, you have to pay for defense costs and legal fees. E&O insurance protects you against a variety of errors.
Benefits of E&O Coverage
When you have an E&O policy, you receive help with the costs of fighting a legal battle, fair deductibles and protection against errors and other omissions. In addition, most insurance companies will help you with risk mitigation. If you can prevent errors from happening, you have less chance of facing lawsuits or other claims due to negligence or error.
When working with insurance retailers and carriers, you need to uphold a standard of professionalism. If you do not, you could put yourself at risk for heavy legal fees and settlements. Carrying insurance to protect against errors can protect your business.