RealTown's RealTalk

Hi All,

I am just now striking out on my own and have a need to obtain Errors and Omissions insurance for my (so far) small company.

Do you have experience in selecting E&O for your brokerage? What should I look for? Where are the best providers? Any thoughts would be appreciated.

Jack

Hi Jack.... we just had a thread on E&O.... you were prolly busy with your new endeavor.... rather than wait for responses to ur question, you might just check recent threads.... seems like most use local companies....

Best wishes on breaking out....
(and then you wish you'd done it sooner....)
Lindy in Houston

Linda Marquis... eeyew.... you sure dropped a bomb there!
I never gave the E&O that much thought, but what you said is a real shocker.
So all those premiums we've paid, like out of our closing proceeds, for each
deal... and now it seems that if we aren't STILL insured by them, then we aren't
covered.... OMG....  so when an agent switches companies, they are now unprotected
even though they paid.... Wow.

I understand you said that was the prodecure with Pearl Ins.,
and I do hope some other RealTalkers will have info for the other E&O companies.

Lindy in Houston

>>Lindy in Houston wrote in part:
>>I never gave the E&O that much thought, but what you said is a real shocker. So all those premiums we've paid, like out of our closing proceeds, for each deal... and now it seems that if we aren't STILL insured by them, then we aren't covered.... OMG.... so when an agent switches companies, they are now unprotected even though they paid.... Wow.<<
 

In my experience, E&O policies are written on a "claims-made" basis. One must have coverage when the claim is made and that policy's prior acts (or retroactive) date must include the date on which the act occurred for which act the claim is made.
 

When E&O insurers are changed, it's important to have the prior acts date be as far back as possible and I've found that date to be negotiable, depending upon specific facts and circumstances.
 

Red flags for agents are, among others, brokerages that go out of business, brokerages that are acquired, E&O insurance that is interrupted and licensees that change broker affiliation.
 

Fred
fsalzer@sempre.com
Poway, CA

My understanding from our recent ethics class is that the company which is covering you when you are sued is the one who pays. NOT the company who was insuring you when the 'act' occurred. So if you are ever in real estate, you should forever keep E & O insurance, I guess.

Sarah Rummage
American Realty Resources
Nashville TN

Linda Marquis... eeyew.... you sure dropped a bomb there!
I never gave the E&O that much thought, but what you said is a real shocker.
So all those premiums we've paid, like out of our closing proceeds, for each
deal... and now it seems that if we aren't STILL insured by them, then we aren't
covered.... OMG.... so when an agent switches companies, they are now unprotected
even though they paid.... Wow.

I understand you said that was the prodecure with Pearl Ins.,
and I do hope some other RealTalkers will have info for the other E&O companies.

Lindy in Houston

So what companies provide E & O?? Any phone numbers or websites??

I find that all REO companies insist on E&O in order to sign up.

Thanks Tary

sssssssssssssssssssssssssssssssssssssssssss
Singletary (Tary) H. Snyder, e-Pro
Broker, Texas Lone Star Realty
1015 North Sunset Canyon Drive
Dripping Springs, TX 78620
Off/Vm:(512)892-6800 Fax:(512)288-5595 Mob:(512)751-6360
mailto:tsnyder@snyderhomes.com
Alternate mailto:tsnyderus@yahoo.com
Homepage:<http://www.snyderhomes.com>
NAR (National Association of Realtors) "2006 Good Neighbor Honorable Mention"
Volunteers Needed:http://www.snyderhomes.com/DisasterResponse/

Jack,

What did you come up with? Who did you go with?

Jack Replies:

Prayer - works every time.

Now the real answer. I have not secured E&O yet. Being in California makes is doubly difficult and doubly expensive for a small operator. Just hanging out there with an umbrella at this time. Still need to be secure, so any help would be great.

Hi Jack,

We are Pinnacle Insurance Consultants, a firm specializing in providing Realtors E&O Insurance for firms such as yourself. We would love to provide a quote for your firm whenever you get a chance. Please contact me and we can move forward sending you an application and answering any questions you might have pertaining to E&O insurance.

Regards,

Mike Young

Account Executive

Michael@pinnacleinsuranceco.com