You NEED E&O Insurance.

When starting a new business, there are a lot of insurance policies to think about. One of the main questions on entrepreneurs' minds is whether or not they need errors and omissions (E&O) insurance. The simple answer is yes—all insurance agencies, whether start-ups or well-established businesses, should have E&O insurance. In this blog post, we'll explain a little more about why E&O insurance is so important for businesses in the insurance industry.

What Is E&O Insurance?

E&O insurance is a type of liability insurance that protects businesses against claims alleging that professional services were not provided as promised. In other words, if your business is accused of making a mistake or omission that resulted in financial losses for a client, E&O insurance can help cover the costs of defending against the claim, as well as any damages that may be awarded.

Why Do Start Up Insurance Agencies Need E&O Insurance?

There are a few reasons why it's so important for start-up insurance agencies to have E&O insurance in place from day one. First, when you're starting a new business, you don't have the same track record as an established business. This means that you may be seen as more of a risk by insurance carriers or potential clients, which could make it harder to establish insurance agency contracts and win new business. Having E&O insurance in place can help offset this perception of risk and make it easier to start growing your business.

Second, even if you're the most careful and detail-oriented person in the world, there's always a chance that something could go wrong. If a client suffers financial losses because of an error or omission on your part, you could be facing a lawsuit—and the costs associated with defending against such a lawsuit can quickly add up. With E&O insurance in place, you'll have peace of mind knowing that you're protected against these types of risks.

Starting a new business is exciting—but it's also risky. There are a lot of decisions to make and things to think about, including which type of insurance policies to purchase. The Independent Insurance Agents Association of North Carolina (IIANC) is a statewide trade association that is committed to helping North Carolina's independent insurance agents succeed. We offer a variety of resources and programs designed to give you the tools you need to thrive in today's ever-changing insurance landscape. If you have any questions or would like more information about our E&O insurance program or agency start up resources, please contact us today. We're here to help you protect your business—now and into the future!