What options can be included in my E&O Policy?

These valuable coverage options are either included (depending on your state) or can be added to meet your business needs:

Open House/Showings Coverage (may be standard or a low-cost option in your state)

Other companies often only cover injuries at your office. CRES’ Open House and Showings coverage extends coverage to injury and property damage that may occur during open houses, showings or other selling activities — including from your real estate signage. Also called Contingent Liability.

Seller’s E&O Protection Plan (may be standard or a low-cost option in your state)

Many of our real estate E&O + ClaimPrevent® policies include Seller’s E&O, but for those states where we don’t, it can be added for a small fee. With Seller’s E&O, your sellers have up to $25,000 in protection from disgruntled buyers for 180 days from close of escrow, and it be extended for an additional 180 days. Uninsured sellers who are sued by buyers often respond by suing their agent. But when they are protected by our Seller’s E&O, that risk is reduced and often eliminated. Claims against Seller’s E&O do not affect your policy or premium.

Plus, the more CRES products that you use, the higher the coverage levels. For example, with a CRES Qualified Home Warranty, you can increase the seller’s E&O coverage by up to $50,000 (in states where available). Whether used alone or paired with a CRES Qualified Home Warranty, Seller’s E&O gives you a competitive advantage to help you close more listings!

Pollution/Environmental/Mold Coverage (may be standard or optional in your state)

Hidden dangers can occur, especially on older real estate properties. Others offer no, or limited, optional coverage. CRES offers higher pollution coverage limits and includes mold and fungi (typically excluded by other companies) when you add this option.

Fair Housing/Discrimination Coverage (coverage for defense only or defense and damages)

This covers you up to your policy limits for any claim involving discrimination.

Defense Outside the Limits (may be standard or optional in your state)

This coverage provides a separate limit for attorney’s fees usually equal to your policy limit (which basically doubles the value of your policy).

Appraisals/Mortgage Brokering

Appraisals and Mortgage Brokering activities are not typically included in a base policy. If you perform these activities, add this coverage for work with mortgage companies and government entities.

Conformity Endorsement

This endorsement amends your real estate E&O policy, purchased in the state where you hold and conduct your primary licensed business, to also conform to E&O requirements of other states where you hold a valid real estate license. If you conduct licensed real estate transactions in more than one state, this coverage eliminates the need to buy a separate policy in each of those states.

Cyber Liability Coverage for Damages

CRES individual policies include Broad Form, which includes Data Breach notification and damages coverage up to $50,000. Additional Cyber Liability coverage can be purchased at various limits.

With E&O coverage for you and your company, you can add cyber liability coverage as an option.

CFPB (Consumer Financial Protection Bureau) Investigations

This optional coverage protects you should you be involved in a CFPB investigation.

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.

Originally Published February 17, 2017

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