Slide 1: ••••••>Importance of E & O insurance for Real Estate Agents Real Estate E & O Insurance has become a basic necessity for real estate agents and brokerage firms in today’s litigious business environment. Even a single lawsuit can prove disastrous to a real estate business. Fortunately, these days there are several insurance schemes that are specifically tailored to meet the unique needs of the real estate industry. E & O insurance or ‘Errors and Omissions Insurance’ for instance is a precautionary malpractice insurance coverage aimed at real estate professionals. Such insurance policies typically protect the possessors from financial losses resulting from lawsuits related to their work and/or real estate dealings. Real estate E&O insurance usually cover such key points as: • • • • • Personal injury up to full policy limits Defense costs including the defending attorney’s fees and a predetermined daily amount to be covered for loss of earnings due to trial attendance Lock box coverage Owned property coverage (generally available only if you own 10% or less of the disputed property’s interest) Sale of personal residence coverage
You can also opt for several elective indemnities such as a fair housing, discrimination and/or steering liability (allows possessor to claim up to 100,000 dollars for defense costs provided he or she is found not guilty of all charges) or the environmental hazards liability depending on the kind of business you typically deal with. Take the time to research various E & O insurance policies before selecting one. A key factor while choosing your insurance coverage is the kind of insurance agent you patronize. Most insurance brokers specialize in specific types of insurance and it is crucial to choose an agent who is truly knowledgeable about insurance in general and real estate insurance in particular. Finally, be sure to extensively research the kind of exclusions and/or limitations on each policy. Most real estate insurance policies contain significant limitations that are not immediately obvious to the non-specialist. Asking your insurance agent to clarify such limitations before obtaining a specific Real Estate E & O Insurance coverage ensures you have the best possible coverage for your individual needs.
