YOU ASK:

Do insurance brokers need professional liability insurance?

WE ANSWER:

Insurance brokers are exposed to a high risk of committing work-related negligence that may cost their clients a lot of money and headaches. Their professional duties include exercising the legal duty of care to others and failure to perform these duties can result in a client of theirs filing a professional liability insurance claim against them in court.

We know people make mistakes and, although insurance brokers cannot prevent such situations from happening, they can minimize the financial impact a professional liability lawsuit can have on them by getting professional liability insurance from a qualified insurance provider. Being professionals working in the field, insurance brokers should be well aware of the subtleties of finding the right insurance quote that will best fit their individual needs.

What Kind of Professional Liability Policy an Insurance Brokers Needs

Since the tort an insurance broker can commit includes professional errors and omissions caused by the insurance broker's failure to perform their professional obligations in the right way, they should be looking for errors and omissions insurance to cover their risk exposures.

An errors and omissions policy is a type of professional liability insurance specifically designed for professionals whose duties expose them to the risk of being sued for professional negligence. A personalized errors and omissions policy can be written specifically for an insurance broker, a real estate agent, an engineer, an architect, an accountant, a lawyer, a financial consultant and other occupations that can be found liable for occupational errors and omissions.

The professions covered under an errors and omissions policy are the ones whose occupational duties involve providing advice to people and exercising legal care for others. Healthcare professionals are covered under a separate professional liability insurance form - the physicians' professional liability policy - which protects them against financially devastating medical malpractice lawsuits.

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