If you provide services, including advice to others and charge a fee for those services, you could be liable for a lawsuit if someone claims that the services you provided caused them financial loss. An errors and omissions insurance policy can cover your liabilities if you are accused of negligence or of providing incorrect or incomplete services. Errors and omissions insurance can be purchased directly from an insurance company or can be purchased through a broker. Here are three important things to consider when choosing errors and omissions insurance brokers.
A good insurance broker may have knowledge and experience with insurance products from various industries and may know the types of questions to ask you related to your business to properly assess your risk. He may also be able to customize products that fit the needs of your company.
Fees and Commissions
Some brokers may charge both fees and commissions. If the broker charges fees in addition to his commission, you may be able to negotiate with him on the fee. Most commissions may not be negotiable.
Background and Reputation
All brokers may not have good reputations or proper licensure. Credentials of errors and omissions insurance brokers can be verified by contacting your local state licensure board or by asking potential brokers for copies of their license. You can also contact the licensure board to find out if there have been any complaints made against potential brokers. Brokers with numerous complaints against them may be more likely to disappoint you with their service than please you.