Undoubtedly, you have all heard of Professional Liability Insurance. For insurance agents, the common moniker is "E&O" insurance. Yet, when you attend E&O classes, the instructors advise you that agents are not professionals and should never, ever, whatever, under no circumstances, suggest to the public that they are professionals!
"Professional" is a binary word. It is like a computer code where every item is a "0" or a "1". A person is either a "Professional" or not a "Professional". The opposite of a professional is an amateur. Therefore, if you are not a professional, you are an amateur. In that case, why buy professional liability insurance? You should buy amateur liability insurance! It is cheaper, and most amateurs focus on selling price anyway. Buying a professional level liability insurance policy is a waste and probably a marketing ploy by carriers to get agents to pay more for insurance than they should.
Amateur liability insurance is what you really need when you are simply a peddler, an order taker, an amateur in other words. Amateurs have a much lower standard of care, generally, so why buy insurance designed for professionals who have a high standard of care? Buy a policy that fits well with amateurs who simply sell insurance policies without giving much thought, if any, to actually providing the coverage their customers need. The fact is that if you think selling someone low limit policies and property policies that are for the ACV or limited mortgage amounts is doing someone a favor and that by doing so you are fulfilling your obligations, you are an amateur. If you just slap ALS on all your commercial accounts and call it good, you are an amateur. If you do not methodically offer your clients the coverages and coverage limits they truly need versus the coverages you think they'll buy, you are not a professional. If you just offer the ordered coverages, you are an order taker and not a professional.
Save some money and buy an amateur E&O liability policy. If you are not sure where to find this coverage, let me know and I’ll direct you to some solutions.
NOTE: The information provided herein is intended for educational and informational purposes only and it represents only the views of the authors. It is not a recommendation that a particular course of action be followed. Burand Insurance Education, Burand & Associates, LLC and Chris Burand assume, and will have, no responsibility for liability or damage which may result from the use of any of this information.
None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.