The guaranty fund paid a consumer’s $15,000 claim because of licensee ben’s negligence. Ben is breaking the news to his broker. how’s his broker likely to respond?

It was due to licensee Ben's carelessness that the insurance company paid a $15,000 settlement. Ben is telling his broker the news. Because your E&O insurance covers this situation, you can go back to business as normal. This is further explained below.

What is E&O insurance?

Generally, A kind of specialist liability protection against losses that are not covered by ordinary liability insurance, errors and omissions insurance (E&O insurance) is also known as professional liability insurance. It protects both you and your company in the event that a customer files a claim against you or your company for negligent actions, mistakes, or omissions that occurred in the course of business operations and led to a monetary loss.

In conclusion, Because of licensee Ben's carelessness, the guaranty fund had to pay out $15,000 to settle a consumer's claim. Ben is divulging the information to his broker at this time. You can go back to doing business as normal since, fortunately, this problem is covered by your errors and omissions insurance.