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Independent Insurance Agents Association<br/>of Montana, Inc.
Independent Insurance Agents Association
of Montana, Inc.
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Monday, 12/22/2014email print

Errors & Omissions Insurance (E&O)

Errors and omissions insurance protects business professionals whose clients could claim damages as a result of the business professional's faulty performance.

The faulty performance may be because of a neglient act, error, or omission by the professional; hence, the name of the insurance.

Errors and omissions insurance protects the business professional by shielding his or her assets and paying for his or her
defense if a client makes a claim. It protects the professional's clients by ensuring that there will be adequate funds
to pay for damages incurred if the professional's services are deemed to be faulty.


Your Trusted Source for Insurance Agents and Brokers E&O, Available Nationwide.


Coverage Highlights & Benefits

Sample Forms & Applications

Agency E&O Related Articles



For 25 years, the Big "I" Professional Liability Program underwritten by Westport Insurance Corporation, a member of the Swiss Re Group (rated A+ Superior by A.M. Best), has been the premiere choice of IIABA member agents for insurance agents and brokers E&O insurance.


With more than 25 years of experience, Fireman’s Fund is an industry leader in providing liability coverage for agents and brokers against errors and omissions. Fireman’s Fund Insurance Company is rated A Excellent by A.M. Best.  This additional E&O market is available nationwide.

For more information, contact Mike Sell (406) 443-7810 ext 104 or msell@iiamt.org

Coverage Highlights and Benefits


Coverage Highlights:
Working with our partners at Westport, we have created one of the strongest coverage forms in the marketplace.  Structured using a modular approach, our policy provides solid core coverage as well as coverage units to insure against other exposures of concern. Review our policy form and you will see these are just a few of the coverage benefits of the Westport policy:

• Coverage for the sale of both P/C & Life/Health insurance products
• Limits of liability up to $15 million
• Broad definition of covered professional services   and activities
• Comprehensive definition of who is an insured
• Aggregate deductibles
• Defense cost outside the limits
• Available first dollar defense
• Full prior acts available
• No contractual liability exclusion

• Coverage for punitive damages (where available by states)
• Multiple extended reporting period options
• True worldwide protection
• Coverage for advertising, libel and slander
• Available coverage units:
   *Employment Practices Liability
   *Real Estate Agents E&O

Coverage  Benefits:
• The only P/C insurance agents and brokers E&O program in the marketplace that contributes a  percentage of every premium dollar to the funding of important advocacy efforts of the IIABA.
• State associations that serve to assist you should a claim arise.
• An exclusive policy form and premium credits filed on a Risk Purchasing Group basis to give Big "I" members coverage tailored to their needs.
• Competitive pricing supported by a critical mass of premium volume to maintain rate stability.
• A partner in Westport Insurance Corporation, a member of the Swiss Re Group, rated "A+ Superior” by A.M. Best.
• Loss prevention materials to reduce the chance of a claim and improve business processes.
• A Professional Liability Committee of IIABA member agents to oversee and recommend   enhancements to the program to meet the ever-changing needs of agents.




Coverage Highlights:

With over 25 years experience, Firemen’s Fund is a dedicated, experienced insurer of Insurance Agents’ needs – yesterday, today and tomorrow. 


• New State-of-the Art coverage form $10,000/$25,000 Catastrophe Claims Extra

• Expense included with no additional premium charge

• $25,000 Regulatory Investigation Defense Expense Coverage

• 90 days after end of Policy Period to report claims and purchase Extended Reporting    

• Supplementary Payments of $250 per day, no policy limit, including state regulatory investigations

• Training, Managing and Supervising regarding Covered Products

• Immediate predecessor firm coverage

• Deductible options – loss only or loss and claims expense

• Aggregate deductible applies

• Claims-made

• Defense outside of limits

• Broad definition of Who Is An Insured, including

• Spousal Liability

• Limits available to $10 million
Retroactive Coverage and Extended Reporting Periods

Coverage Benefits:

• iCustomer Series® and Loss Prevention support

• Heritage program contribution

• A. M. Best rating of “A” (Excellent)

• Dedicated, centralized claims expertise with multi-line background


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Sample Policy Forms and Applications


The Westport policy is designed using a set of general terms and conditions and coverage modules. This allows Westport the flexibility to effectively react to the coverage needs of member agents.

Sample Policy Form:

General Terms

E&O Coverage Unit

To apply for coverage, complete the Insurance Agents and Brokers Professional Liability application and forward it to the appropriate state association contact, who will contact you once the application has been received. Our application is also posted for your completion and return. The application forms are in an Adobe Acrobat Portable Document Format (PDF) to give your application a professional and clean appearance. Viewing and completing the forms requires the free Adobe Reader program which can be downloaded from  www.adobe.com.

Insurance Agents and Brokers Professional Liability application

IMPORTANT NOTE: Unless you have Adobe Acrobat software, you will not be able to save the completed application. When completed immediately print a copy and fax the application to your state association contact, Mike Sell, at (406) 442-8263.




The Fireman’s Fund policy offers broad coverage tailored to insurance agencies. 


Sample Policy Form:

FFIC Policy Form


To apply for coverage, complete the Fireman’s Fund Insurance Company Independent Insurance Agents application electronically and email it to the appropriate state association contact, who will contact you once it is received.   This application is a pdf form that MUST be completed by typing the information directly into the form, saved locally, then after completion digitally signed and sent via email to the state association contact.   Viewing and completing the form requires the free Adobe Reader program which can be downloaded from 
 www.adobe.com.    If you have any questions completing this pdf form, please contact your state association.

Fireman’s Fund Insurance Company Independent Insurance Agents Application


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      Agency E&O Related Articles

These thought-provoking articles discuss potential E&O issues associated with your agency’s operation. Please feel free to share the articles with all your agency's employees.

Sources of E&O Liability Close to Home    – There may be E&O claims lurking within the agency related to providing insurance to employees or entities that are partially owned by the agency, or which the principal participates on the board of directors.

Agents' Authority: A Double-Edged Sword – This article looks at the sources of agents' authority and the impact of it on the E&O exposure to the agency.

Claims and E&O: Let Common Sense Be Your Guide  – As companies make their claims service more efficient, agents need to balance staying involved in the claims process with avoiding unnecessary E&O exposure.

As seen in “E&O Angle,” a monthly column in Independent Agent magazine.

Good Price, Bad Value   What is your agency's strategy for buying E&O insurance?

Avoid Insurer Insolvency Claims   Monitor carrier ratings to mitigate risk.

Document! Document! Document!   You've heard it beforebut do you know what it means?

Change with Care – If you’re thinking about changing your agents E&O carriers, use this checklist. 

What if it Happens to You?  – Here are some things to think about if you are put in an E&O claims situation.

E&O and Economies of Scale – The recent five-year contract renewal between the Big “I” Professional Liability Program and Westport is important for all agents – here’s why.        

Road Map for Claims Prevention– Don’t get overwhelmed – here’s the path toward prevention E&O claims.

Checkmate!– Are you using coverage checklists to work with clients?

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Serving the People of Montana since 1932. If you pass us by, we both lose!

Independent Insurance Agents Association of Montana, Inc.
3131 Dredge Drive · Helena, MT 59602
Tel: 406-442-9555  ·  Fax: 406-442-8263

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