Glossary
Errors and Omissions Insurance
Professional liability coverage protecting an insurance agency against claims arising from mistakes in the advice or service it provided.
E&O responds when a client alleges the agency got something wrong: failed to bind requested coverage, misstated a limit, let a policy lapse without warning, or issued a certificate showing coverage that did not exist.
It is effectively mandatory for agencies and is frequently required by carrier appointment agreements. Documentation is the best defence — contemporaneous records of what was requested, recommended, and declined decide most claims.
See also
- Certificate of Insurance — A one-page summary evidencing that coverage is in force, issued to a third party such as a landlord, lender, or client.
- Lapse — A gap in coverage caused by a policy terminating — usually for non-payment — before a replacement or reinstatement takes…
- Carrier Appointment — The contractual authority granted by an insurer allowing an agency to sell and service its products, with agreed commiss…