1.DON’T PANIC! Many of the claims made against Brokers and Agents are frivolous and will go away with a proper response from our Legal Forum. It is important to remember that a claim does not always mean a lawsuit served on you. A Claim may be a demand letter from an unhappy Buyer or Seller.
2. If you receive a demand letter or email from another party, a summons and complaint, demand for mediation, demand for arbitration or a letter from an attorney, call the CRES StressLess Hotline at 1-877-CRES-INS immediately.
3. You will be instructed on what to do next. You can expect to be required to make copies of the document(s) you received or were served on you. You will also be informed that you may need to make copies of your entire transaction file that relates to the claim.
4. You will be asked to include the business cards of each agent who participated in the transaction in your office and the broker for the office.
5. At some point, you may be required to prepare a narrative of what really happened in the transaction. You should begin by reviewing your notes concerning the transaction and the documents contained in your file.
Things you should NOT do:
1. Although the claim may appear frivolous to you, do not make that determination. Send the claim to us. The CRES Risk Management Division and the attorneys assigned by the insurance company are better trained to determine if the claim has merit or not.
2. Do not talk to anyone besides the Broker for the office or the Risk Management Attorneys about the facts of the transaction or the claim. Such statements may become an admission against you.
3. Though you may have a personal attorney or belong to some pre-paid legal plan, all claims made against you under the insurance policy must be reported to CRES Insurance Services in order to comply with the terms and conditions of the insurance policy. Reporting the claim to your personal attorney or a pre-paid legal service will not comply with the insurance policy.
If you have any questions about this procedure, please contact the CRES StressLess Hotline at 877-CRES-INS or 877-273-7467.
This blog/website is made available by CRES Insurance Services for educational purposes to give you general information and understanding of legal risks and insurance options, not to provide specific legal advice. This blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Claims examples are for illustrative purposes only. Read your policy for a complete description of what is covered and excluded.