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Errors and Omissions Insurance (E&O)
Print, fill out, and fax the forms to: (515) 243-2331.
Program Administration by MARSH Consumer (866) 814-7518
Important!
Agents must fax the E&O insurance to HBW at 888-742-7634 once it is purchased from Marsh. HBW will then submit it to AIG and any other carrier that the agent may be contracted with. Please read the FAQ for important information regarding these policies!
Coverage Highlights
- $1,000,000/$1,000,000 per case/aggregate*
- $500 deductible for HBW business
- $5,000 deductible for outside life insurance business (for approved outside business)
- Special pricing for newly licensed agents**
Coverage Costs
- $400 per year for all currently licensed agents (both new and existing)
- $75 per year to add Annuity Rider
- $25 per year to add Disability Rider
Special Pricing for Trainees
- Just $250 the first year for trainees just becoming licensed**
Other Important Notes
- Policy year begins October 1st, 2007
- Policy cost is non-refundable Coverage includes prior acts
- Agents will be able to request the certificate directly from Marsh Consumer
*aggregates do not effectively apply to NY agents.
**Please read the FAQ below for details on New Agent Qualification.
Frequently Asked Questions
Q. I recently joined HBW as a licensed agent, do I qualify for the new agent discount?
A. No. The discounted rate applies to Training Reps who become licensed after joining HBW. The policy is full price for licensed agents because of prior acts coverage.
Q. Do new trainees have to buy the insurance when they sign-up with HBW?
A. No. They don't have to pay for their E&O until they become licensed and need to submit proof of insurance with AIG for their appointment. They then pay $250 because we know they joined us as unlicensed. To qualify for the new agent pricing, the request for insurance must be made within 30 days of becoming licensed.
Q. If I pay $400 now for basic coverage can I add the Annuity or Disability riders mid-year or do I have to wait for policy renewal.
A. Agents may purchase the rider mid-year, but only by appeal to the underwriters of the policy. Any experienced agent who may wish to sell annuities should purchase the rider up front and avoid potential problems near the point of sale.
Q. As a newly appointed trainee I paid $250 for my policy. Can I add the Annuity rider?
A. Possibly. New agents must appeal to the underwriter for an exception. Among other things, the appeals process will involve documenting your relevant experience and education.
Q. Do I need this policy if I am already covered by Errors & Omissions insurance through HBW Securities LLC?
A. No.
Q. What happens if I buy the coverage now, but decide in a few months to get my Securities license?
A. If you get the Securities E&O within 60 days of purchasing the life E&O, we will refund half the cost of the life E&O.
Q. What do I have to do to get my outside business approved under the policy?
A. Submit a letter listing each carrier for whom you are seeking coverage as well as a short desciption of the products being sold, ie, term insurance, ul, eiul, etc…to our licensing and contracting department.
Q. Can I buy a policy under my corporate name and have it cover all my officers?
A. No. A separate policy must be purchased for each of the insured. Corporate names can probably be added for each officer as additional insured. We are currently checking this with the underwriters.
What is E & O insurance?
- Errors and omissions (E&O) insurance, also called professional liability coverage, insures professionals against client claims of error, omission, or negligence in the performance of their professional duties.
- E&O insurance for insurance agents and brokers provides protection against the following common client claims: that the customer was unfairly denied coverage, provided inadequate, inappropriate, or financially unsound coverage, or not properly informed about coverage changes, limitations, or termination.
Why is insurance agents' E & O insurance necessary?
- Most agents and brokers are required by their insurance markets to carry E&O insurance.
- General business owners policies do not include professional liability insurance, covering losses and legal expenses resulting from client claims of error or negligence.
- Lawsuits against insurance agents and brokers are increasing.
What else should I know?
- Pricing and coverage for E&O insurance policies varies. Factors include the agent's or broker's size and location, the services provided, and the business's classification.
- Successfully defending an errors and omissions case requires documentation. Agents and brokers should always maintain detailed records.
- Not all client claims against insurers feature a clear-cut error or omission. Unfortunately, these claims still can be difficult and costly to defend.
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E & O Sign-up Form