When you think about the many threats to your brokerage, competition, market fluctuation, employee turnover, and several others may come to mind. However, one of the largest threats to the success of your business is financial loss because of insufficient insurance coverage.
While there’s no way to completely avoid risk, there are ways to minimize it. A risk-management plan should be something you have in place before a problem arises. Wait, and it might be too late.
Not only can insufficient insurance coverage affect the financial strength of your business, the longer-term losses may be reputational. While $50,000 may seem like a large loss to take to resolve an issue, the true loss could be that client and others.
David Pasco, senior account manager with Roanoke Trade, joined Truckstop.com recently to present part three of “Broker Best Practices in Limiting Risk,” focusing on Errors and Omissions Insurance (E&O). E&O is a powerful tool for minimizing your exposure to risk, but as with any other tool, it needs to be used appropriately to maximize its usefulness.
In this interactive session, Pasco presented:
- What E&O is, and what it isn’t
- What it covers, and what it doesn’t
- When you need it, and when you don’t
- Policy points to look for
Pasco also recapped the first two parts of this popular webinar series covering different types of insurance coverages, along with pitfalls to avoid when making a decision on how and when to purchase each.
The webinar recording can be found here:
When it comes to limiting the risks to your brokerage, insurance is a truly powerful tool to have in your toolbox. Know how to use it, which type to use, and when will it be most effective.