6 things to look for in an E&O policy

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A pair of glasses and a silver pen sit on top of a contract.

10/07/2014 | Author: Editorial Staff

Searching for the right errors and omission (E&O) insurance policy can be daunting. Barney Schwartz, CEO of Preferred Guardian Group, a TAR risk-management partner, suggests looking for a company that specializes in insuring real estate practitioners and finding an E&O insurance provider that also offers other insurance options. This can make it easier for you, since you’ll only have to contact one place for all your questions and issues.

The E&O expertise is important, though, so you can get the help you need examining the available options. “When looking for an E&O provider, policies vary significantly,” Schwartz says, so look for coverage for at least the following:

  • Property management
  • Agent-owned properties
  • Business brokerage (selling a business)
  • Discrimination (fair housing)
  • Disciplinary proceedings (TREC complaints)
  • Environmental

The Texas Association of REALTORS® has a new resource that helps you reduce your risk. Learn about our risk-management partner program in the Sept./Oct. issue of Texas REALTOR® magazine.

Categories: Business tips
Tags: e&o, texas realtor magazine


Comments

John in Round Rock on 10/09/2014

It’s good to remember that insurance companies are not in the business of paying claims.  For many of them, the list of caveats and exclusions is enough to ask, “And, what was it that you actually are going to cover?”  You’d be surprised how little help they are in time of need.  The best policy is to scrupulously run your business so that you avoid the need for this type of coverage.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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