Why Insurance Agents Need Professional Liability Insurance

As an insurance agent, you understand how professional liability insurance can be beneficial for various businesses. But what about your agency? One in seven insurance agents will be involved in a professional liability situation at some point in their career. This is because agents routinely dispense financial advice. a person sitting at a desk in front of a computer

a person sitting at a desk in front of a computer

Think about it. You suggest insurance policies to clients based on what you think can help protect their interests. This advice, however, can lead to the following situations:

You may recommend lower coverage limits, but an extremely damaging event leads to a significantly higher claim, causing massive out-of-pocket costs to your client.
There may be a miscommunication in how you explain policy benefits, leading a client to believe he has more coverage than he actually does.

You may recommend against buying a certain policy like flood insurance, but then a client suffers flood damage and blames you for his decision to not buy coverage.
With a long list of exclusions, you may forget to mention one, which a client can blame you for if that event causes damage and he then learns that he’s not covered.

There are many other instances of how giving financial advice in regards to insurance can come back to haunt you. Just one lawsuit can stunt your income and threaten your career. However, equipping your agency with professional liability insurance helps cover the legal expenses associated with a claim against you, so you can remain in business for years to come.

Get the coverage you need. Call Primero Insurance Agency at (830) 221-7791 for more information on New Braunfels professional liability insurance.

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