Examining The Importance and Requirement of E&O Insurance for Life Insurance Agents
You as a Life insurance agents are a highly skilled professional who has a solid understanding of the insurance market. As an Advisor, you must always attempt to convince others to obtain life insurance and protect the futures of their loved ones. Suffice to say, the job is easier said than done. Oddly enough, being a life insurance agent, you must obtain your own insurance, before you can begin disputing insurance products and services to clients. Among these requirements, you will need to obtain a sufficient amount of Life insurance agent E&O Insurance. The requirements will be explored in greater depth below.
Should You Invest In Errors and Emissions Insurance?
Well, the best way to answer this question is to start by asking yourself, “Am I at a risk of financial loss, in the event of an omission on my part”? If your answer to this very important question is “yes”, then you should definitely invest in errors and emissions coverage. When a client files a civil claim against your company, you will need to defend yourself legally, which means you will need to hire an attorney to represent you. The expenses of a defense team and court costs along with the claim amount can potentially run up into thousands of dollars or more.
Within the country of Canada, life insurance agents and companies need to obtain a specific amount of E&O coverage from a licensed insurance provider in Ontario, Canada, before they can begin performing their services. The process is complicated by the fact that the requirements deviate from one province to another. Within the Province of Ontario, insurance agents much have Errors and Omissions insurance, as set forth by Section 17 of Regulation 633. In order to sell activities with a life insurance agent’s license, the insurance is a must.
In terms of coverage, each agent should have at least 1 million CAD for one occurrence. $1 million per claim and $2 million is recommended be obtained. Finally, your deductible should be around $1,000! Also, you must make sure that your E&O insurance includes coverage for losses steaming from fraudulent acts. Remember that failing to abide by these laws could very well result in enforcement action and you could end up losing your license.
If your insurance brokerage or company does not provide you with insurance, you will need to obtain it on your own.
Finding A Broker
As a life insurance agent, you should understand the importance of finding a good broker. Finding a broker with expertise, experience and skill is highly recommended. There are many excellent brokers out there, but few of them can parallel the performance put forth by LiabilityCover. Not only are we one of the most reputable brokers in Canada, but also, we are one of the most affordable for life insurance agent errors and omissions insurance. Get in touch with us today by request a quote below!