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Why You Shouldn’t Buy Real Estate E&O Insurance from a General E&O Company

Real estate E&O insurance is unique from other types of business insurance. Each real estate transaction can present a different set of risk considerations, challenges and regulations to abide by than the previous transaction.

See our Ultimate Guide to Understanding Real Estate Errors and Omissions Insurance

Real estate E&O insurance is unique

Nowhere else is there the same Independent Contractor relationship between licensee and the Firm. This unique relationship may lead to gaps in standard E&O policies.

Here’s why that matters to you and your business:

  • A company focused on real estate E&O insurance has specific experience on how to defend and handle real estate related claims.  (For example, CRES has specialized in real estate E&O and helping to prevent and defend claims for over 20 years.)
  • A real estate E&O focused insurance company understands the roles real estate professionals can play for their clients— from seller or buyer representation to property management. No two real estate professionals are the same and your insurance shouldn’t be either.
  • When your entire focus is real estate E&O, the company keeps abreast of real estate industry policy and law to ensure the services and coverage offered continue to protect clients. At CRES, we help our clients reduce and avoid new risks.  (For example, CRES offers Open House and Showings Coverage, Seller’s E&O Protection Plan, and many other E&O innovations to specifically address the risks real estate licensees face daily.)
  • Our greater knowledge of real estate activities allows CRES to focus on how to help members prevent claims. For example, CRES uniquely offers pre-claim Real Estate Legal Services — to put you in touch with an expert local real estate attorney — to help you actually avoid claims.  That’s a highly valuable service you just won’t find with generalist E&O companies.  Most generalist E&O insurance firms, as well as many that specialize in real estate E&O, only service your claims AFTER they happen.
  • CRES makes your job as a real estate professional easier and safer by including legal advice for our members.  (For example, CRES E&O + ClaimPrevent® attorneys stay educated on the latest legal updates in every state — a unique focus on claim prevention you just won’t find with most other E&O providers.)
  • Since we only work in the real estate industry, we are personally invested in the success of the real estate industry.  At CRES, we are highly motivated to see you succeed.

Insurance companies offer E&O insurance, but it may not be tailored to real estate risks

Choose a partner for your real estate E&O insurance needs that knows your business inside and out, will help you succeed, and will help you prevent (not just cover) claims.  Learn more about CRES Real Estate E&O + ClaimPrevent®

Have you had experience with an E&O provider that wasn’t specialized or educated in the real estate industry? Share your story with us in the comments below!

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