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.
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 they offer continues to protect their clients. They help their clients reduce and avoid new risks. (For example, CRES offers Open House and Showings Coverage, Full Prior Acts Coverage, and many other E&O innovations to specifically address the risks real estate licensees face daily.)
Their greater knowledge of real estate activities can allow them to focus on how to help members prevent claims. For example, CRES uniquely offers a 7-days-a-week Real Estate Legal Hotline — 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.
They make the job of a real estate professional easier and safer by including legal advice for their 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 they only work in the real estate industry, they are personally invested in the success of that industry. They are highly motivated to see you succeed.
Yes, there are insurance companies out there that offer E&O insurance, but that doesn’t mean that it is tailored to real estate E&O insurance needs.
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!
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.
Arizona Realtors®: Even if your real estate firm has E&O, you can still be responsible for attorney fees and damage… https://t.co/hnxoEUZx0PReal Estate Pros - Are you looking for a way to sell your listings faster, at a higher price, and reduce out-of-poc… https://t.co/AVTQRjRcGq