Errors and omissions claim

[lisar1208]

Hello,
Can anyone tell me what happens with a E&O claim and how it affects the company. The company I work for is going to have a claim filed against the agent for an error she did when she wrote the policy.
We are worried that it could affect the company and the other employees also.
Has anyone gone through this?

 

[Mark]

I just hope that the E and O company will cover what ever the agent did wrong. If you ever read what the E and O coverage does not cover, it will scare you to death. E and O does not coverage everything that you do wrong.

 

[Crabcake Johnny]

If you read an E&O policy you're left figuring out a scenario where they would actually pay.

 

[SportsNut]

Unless you work for a paper-thin company or unless the wrongful act caused death and dismemberment, the actual impact of the claim on any insurance company shouldn't be a concern. I suppose if it were some class action suit that involved hundreds or thousands of claimants that were harmed, the damages could severely impact an ins company, but that would be unlikely too. Unless by company you are speaking of the agency...?

The main benefit of E&O, like many other casualty insurance coverages, is the fact that the company retains legal counsel and represents the ins co and agent in the case. The cost of the defense can often times be the most devestating part of any claim, even when you win. There is motivation on all sides to settle a claim, unless the acts are so wrongful that a jury award would be a slam dunk.