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Too few real estate agents understand E&O policies


 

Florida Realtors Rewards: E&O Insurance

This program offers E&O advice and helps identify an insurance company that addresses a firm’s specific needs.  Get more details.

NEW YORK – Dec. 4, 2013 – Maintaining adequate errors and omissions (E&O) insurance is crucial for the real estate industry, which manages millions of dollars in commercial and residential property transactions.

However, a sizable majority of firms in both sectors don’t fully understand E&O policies. According to a recent industry study, brokers and agents who fail to completely comprehend the details of E&O policies may underestimate their needs when it comes to comparing different insurance options.

Consequently, some may make poor decisions that could result in coverage gaps or polices that don’t fully meet their unique requirements.

There are several ways that brokerage companies can become more knowledgeable about their coverage. The first tip is to work with an industry expert that has a demonstrated level of expertise. A second rule of thumb is to know what services are actually covered in the policy – and just as important, which are excluded.

Finally, it’s important to ask about innocent party protection. For example, the National Association of Realtors® recently noted that if a listing salesperson purposely does not disclose important property information without the broker’s knowledge, innocent party provisions would help safeguard the firm.

Source: RISMedia (12/01/13)

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

Related Topics: Business