If you are an insurance agent or a insurance broker, you are already aware of the tremendous amount of responsibility you have to protect the interests of your clients. Unfortunately, when things don't go well, you can also be exposed to a tremendous amount of liability from those whose interests you work so hard to protect.
Sometimes, when things do go bad, you can find yourself facing legal actions, and often you will find yourself doing so entirely on your own. In times like these, you will want to carry agents and brokers professional liability insurance.
Professional liability insurance helps to protect you against the full cost of a negligence claim brought by a client, partner or carrier. Agents and brokers professional liability insurance focuses on the alleged failure on the part of, financial losses that are caused by, and the error or omission in the service, or product sold by a policyholder. These are the most common potential causes for a legal action that would not be covered by a more general liability insurance policy that addresses more direct forms of harm.
Professional liability insurance is required by most states for most insurance types.
Admittedly, there is a good chance that no type of insurance could fully protect you in the face of the most costly of legal consequences, but at least it's a start. There can always be conditions that overwhelm even the provisions of the best policies, but in most cases, after mitigation has taken place, liability insurance policies can contribute significantly to the protection of a policyholder when actions take place. This gives the policyholder something to go back to after the legal process is over. Otherwise, and this happens frequently, the defendant simply goes back to nothing to reclaim his or her business and life.
When there is a liability policy in effect, things often turn out to be completely different since at least some of a business person's assets are maintained so that they can start their businesses and their lives over again.
The net effect ends up being an opportunity to make something of a person's life, and even their business, after the completion of a lawsuit. And even when there is no fault found in the lawsuit that is brought, there is still the chance that a defendant could lose a significant amount of their assets as a result of simply paying the expenses of defending themselves in a legal action. After all, attorneys don't work cheap, and whether the action requires a lot of work or virtually nothing, the defendant is often left holding a very expensive bag.
Professional liability insurance is worth the cost, even when your intents are the best in rendering services to your clients. You are protecting the future and those of your employees and family in addition to your career.