By Amanda Federici
Vice President, Berkley Service Professionals, a Berkley Company
December 2, 2025
Even the most experienced agents and brokers can find themselves facing an Errors & Omissions (E&O) claim—I’ve seen it firsthand.
These claims are more common than many realize. In fact, one in eight agents will report an E&O claim each year. The average claim costs around $40,000, and that number is climbing by about 10% annually, according to InsuranceThoughtLeadership.com. Whether the claim comes from a policyholder or a carrier, the financial and reputational impact can be serious.
At Berkley Service Professionals, we help agents navigate these risks every day. One of the best ways to protect yourself is by building habits that not only help defend against claims but often prevent them altogether.
Know your legal duties
Understanding your legal responsibilities as an insurance agent is key to avoiding E&O trouble. Two concepts that come up often in claims are agents’ “duty of care” and fiduciary duty.
- Your “duty of care.” When you help a client secure insurance, the law generally sees you as working on behalf of the insured, not the insurer. That means you’re expected to act in your client’s best interest, using reasonable skill and diligence to help them get the right coverage.
If a client asks for specific coverage, or if their situation clearly calls for something more comprehensive, you’re expected to advise them accordingly. That includes discussing higher limits or additional protections they might not have considered.
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