People rely on auto insurance agents to ensure they are protected against liability from an error or negligence on the road—from an accident. Insurance professionals need similar liability protection if they make an error or are negligent with a client’s policy or claim. Here’s what insurance professionals should know about such protection.
What Is MPL Insurance?
Miscellaneous Professional Liability (MPL) insurance provides financial protection against client liability claims that a professional made an error in providing service or neglected to perform services as promised. MPL insurance covers any legal costs and payouts for professionals found legally liable.
Why Do Insurance Agency Professionals Need MPL Insurance?
Having MPL in insurance is essential, even for insurance professionals who think they are meticulous with their job duties. A client miscommunication could mean an agent fails to add requested additional coverage to a policy leaving a client underinsured. A claims adjustor could miss a detail in an investigation that could prove costly to a client. The client will hold the agent or adjustor liable.
Remember that an insurance agent or investigator does not have to make a mistake to be sued. Meritless lawsuits are filed all the time. Having MPL in insurance can help cover legal costs regardless.