Abosida &Slinko, Inc.
Abosida &Slinko, Inc.
Errors & Omissions Insurance Agency
Errors & Omissions Insurance Agency
Contact Us
Today, we live in a very litigious society, buyers and sellers of real estate are filing more and more lawsuits. As Real Estate professionals you can do the best job possible for your clients, make everyone happy, and be sued down the road for something you had no control over. Although it may not be your fault you still have to defend yourself and defense cost can easily exceed $5,000 in most cases. Because Real Estate transactions have become much more complex and involved, the need for real estate agents' errors and omissions insurance is greater than ever.
What is real estate agents' errors and omissions insurance?Errors and omissions (E&O) insurance is a specialized type of professional liability insurance that protects against lawsuits due to errors, mistakes, or negligence of real estate agents and realtors.E&O insurance claims can arise for several reasons , but the most common cause is misrepresentation on a property or failure to disclose a property condition (failure to disclose a roof leak, foundation crack, easement, etc.)
Why is agents' E&O insurance necessary?Some states are now requiring realtors' errors & omissions insurance. Industry observers believe such regulation will likely become more commonplace in the future. Real Estate offices who don't have E&O insurance face significant risks, even if a lawsuit is frivolous or unfounded. Getting hit with a claim without coverage can be financially and professionally devastating to the point of bankruptcy. Although you may not personally be involved in a specific transaction one of your agents is conducting, you can still get brought into the lawsuit, as can your company, because as a broker you are responsible for your agents and their actions.
What else should I know?Almost all E&O Insurance is a claims made policy form. This means that both the occurrence and claim must happen in the policy period, once you decide to purchase E&O insurance it must be in constant force at all times in order to have coverage back to the original date of purchase and the occurrence must have happened after that date as well . For example, if you start your coverage on January 1, 2005 and at renewal time, January 1, 2006, you decide to not renew and let your coverage cancel/lapse. That whole year of coverage for 2005-2006 goes away. However, if you renew in January of 2006 your new policy should have a prior acts date/retroactive back to your original date of January 1, 2005. Also if switching coverage to a new insurance carrier make sure they are honoring your prior acts date.
What is real estate agents' errors and omissions insurance?Errors and omissions (E&O) insurance is a specialized type of professional liability insurance that protects against lawsuits due to errors, mistakes, or negligence of real estate agents and realtors.E&O insurance claims can arise for several reasons , but the most common cause is misrepresentation on a property or failure to disclose a property condition (failure to disclose a roof leak, foundation crack, easement, etc.)
Why is agents' E&O insurance necessary?Some states are now requiring realtors' errors & omissions insurance. Industry observers believe such regulation will likely become more commonplace in the future. Real Estate offices who don't have E&O insurance face significant risks, even if a lawsuit is frivolous or unfounded. Getting hit with a claim without coverage can be financially and professionally devastating to the point of bankruptcy. Although you may not personally be involved in a specific transaction one of your agents is conducting, you can still get brought into the lawsuit, as can your company, because as a broker you are responsible for your agents and their actions.
What else should I know?Almost all E&O Insurance is a claims made policy form. This means that both the occurrence and claim must happen in the policy period, once you decide to purchase E&O insurance it must be in constant force at all times in order to have coverage back to the original date of purchase and the occurrence must have happened after that date as well . For example, if you start your coverage on January 1, 2005 and at renewal time, January 1, 2006, you decide to not renew and let your coverage cancel/lapse. That whole year of coverage for 2005-2006 goes away. However, if you renew in January of 2006 your new policy should have a prior acts date/retroactive back to your original date of January 1, 2005. Also if switching coverage to a new insurance carrier make sure they are honoring your prior acts date.
E&O Insurance for Real Estate and Real Estate related industries.
Abasido & Slinko, Inc
12155 Gay Rio Terrace
Lakeside Ca. 92040
12155 Gay Rio Terrace
Lakeside Ca. 92040