Many times an individual looking for coverage will ask what are common exclusions in an independent insurance agency e&o policy. They will typically want to know what is not covered, and what coverage is specifically excluded in a policy. Most people realize that most policies do not include their home, vehicle, pet, life insurance, or other rider policies. Therefore, an individual will commonly ask how to become an independent insurance agent and what are the exclusions in an insurance agent e&o policy.
Not surprisingly, the most common exclusion is death and dismemberment benefits. This means that the agent will not pay out on the death benefit if the insured dies during the term of the policy while he sells insurance. However, they may cover burial expenses, and funeral expenses up to a certain amount, depending on state regulations. Another fairly standard exclusion is that the agent will not pay claims for loss of or damage to property. This includes damage caused by a disaster, vandalism, or any type of crime, and also includes vandalism that is the result of an act of theft, according to the Bureau of Labor Statistics.
Furthermore, another very common exclusion is coverage for losses that occur during travel. This is similar to a homeowner’s insurance policy in an insurance aggregator, in that it will provide coverage for damage to or theft of the insured’s personal property. Travel coverage e&o’s differ slightly from homeowners. The travel coverage, e&o’s usually only provided coverage for the first leg of the trip, while the homeowner’s policy provides coverage for a full stay. Again, this is dictated by state regulations.
There are also some policies that are called “contingent” e&o’s. These are typically provided by the agent when you initially purchase your policy, and they can be referred to as such. They tell you how to sell insurance as well. Essentially, contingent coverage means that some things are excluded from coverage. For instance, if the individual were to lose their job, this would likely not be covered under their policy.