Why You Need E&O Insurance (Even If You're Not the Agent of Record)

Being the Agent of Record and needing E&O insurance are two different things. You can skip one and still need the other.

What Agent of Record Actually Means

Agent of Record (AOR) just decides whose license is on file with the insurance carrier as the official contact for an employee's health policy. It doesn't apply to who has done the work with the employer to ensure that these employees have access to the policies to begin with.

Why You Need E&O Insurance (Even If You're Not the Agent of Record)

E&O covers brokers engaging with employers and providing professional advice on the ICHRA design they offer - even if you're not broker of record, you are still compensated on the PEPM that employers pay and as such we make sure that brokers on our platform all have current liability coverage.

The Bottom Line

Think of it this way: AOR is about whose license is associated with the end health insurance policy purchased by the employees. E&O is about who's covered if an employer claims some advice was wrong. You can be 100% out of the AOR seat and still need to be covered from that side which is why StretchDollar requires it for active agents on our platform.