E&O Insurance Plan designed exclusively for AOBG agents!

Errors & Omissions insurance, also called E&O insurance, is a type of professional liability insurance that safeguards against financial damages arising from an alleged error or omission you make while rendering professional services. In layman’s terms, it helps protect you when you make a mistake or forget to do something important that ends up hurting a client.

Every E&O policy is different so it’s important to carefully read your policy to understand coverages, exclusions, limits, deductibles and other key policy considerations. NAPA E&O insurance policies are specifically designed to protect insurance and financial professionals selling and servicing products that can include life, accident, health, long-term care, disability, Medicare Advantage, Medicare Supplements, employee benefit administration, fixed & indexed annuities, mutual funds and variable products.

When you make an error or omission in the sale or servicing of a financial or insurance product, it can trigger a client lawsuit that can cost thousands of dollars to defend. If you are found liable, and a judgment is levied against you in a court of law, you may also be responsible for settlement costs. Having an E&O insurance policy in place provides you with expert legal counsel in the event of a claim and helps protect your current and future earnings. It also safeguards your business and personal assets against the high costs associated with client litigation and court settlements.

Your individual policy limits of liability consist of two amounts. As an example, if you have $1 million/$1 million, the first amount indicates the limit of liability, or the most that will be paid out per claim per policy year. The second amount indicates an annual aggregate, or the most that will be paid out in the policy year regardless of number of claims. In this example, if you have 2 claims that paid out at $100,000 each, you would still have $800,000 left on the annual aggregate. There is also a total policy aggregate for the master policy. This total limit is shared by all agents on the policy for the policy year.

The activities that are covered are any negligent act, error or omission by the insured or any person for whose acts the insured is legally liable, arising out of the conduct of the business of the insured in rendering services for others as a licensed life, accident and health insurance agent, licensed life, accident and health insurance general agent, licensed life, accident and health insurance broker or Series 6 registered representative as respects claims first made against the insured and reported to the Carrier during the policy period. The policy will cover the sale and servicing of all life, accident and health insurance products. Mutual funds and variable product sales included in base coverage. Coverage also extends to life, accident & health insurance products placed with carriers outside of sponsor but the higher deductible will apply.

Yes, this coverage does work for all the carriers with which you are appointed as long as the products you sell are covered products.