Why Errors And Omissions Insurance For Health Insurance Agents Is Essential
Errors and omissions insurance for health insurance agents, also known as E & O coverage, is something that should not be overlooked. It is comparable to medical professionals purchasing malpractice insurance. Essentially, E & O covers you any time a client asserts that something you have done, or failed to do, has caused some form of harm to him or her.
The Importance of Coverage
It is unrealistic to think that you will go through a lifetime of business practice without one client alleging a claim against you. There is always a possibility that you will make a mistake, or at least that someone will claim you have. If this happens and you are not adequately covered, you can be hit with a fortune of court costs and profit loss, even if the claim is eventually proven to be groundless. Individuals and small businesses can even go bankrupt in these cases.
When Is It Necessary
Like buying any kind of insurance, the sooner you have it the better off you will be. Not having this coverage in place right away would be like waiting to buy car insurance until after a traffic accident has taken place, or not buying health insurance until you are admitted to the hospital and faced with a bill. Any time you deal with clients you are at risk for a claim against you, so do not put this off.
Things to Be Aware Of
Be aware that general liability insurance does not cover E & O claims, as this is a specific field that often requires specialized knowledge and experience in order to effectively counteract claims. Be sure that the company you go with is not only well versed in E & O but also in health insurance practice. Another thing to look for is exactly what your policy will cover, as they are all different. As an example, certain policies will only cover your claim if the initial occurrence was during the policy’s lifetime, making it unimportant when the claim is actually filed against you.
Errors and omissions insurance for health insurance agents is essential to have. It has the potential to save a person or company from monetary disaster or even bankruptcy and should never be overlooked.
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