Most Real Estate Brokerages in the U.S. buy their own Errors and Omissions policy to ensure the company is protected. Then, they charge their licensees for the coverage.
This prevents the safety of your company from being at the mercy of your individual licensee policies.
Benefits of a Company Real Estate E&O Plan
Your company will be better protected with your own Errors and Omissions Policy.
And you’ll have control over how much protection your company has — rather than your licensees. For example:
- If you rely on your licensees to have individual coverage, what If they don’t have coverage for a specific issue?
- What if the claim damages exceed the amount of their coverage in that specific area?
A licensee’s overall policy limits (likely to be much less than a company policy) won’t cover many situations.