Some real estate firms may even consider going without errors & omissions coverage to save money. However, dropping your coverage can cost you more than you think. Here's why:
1. If you drop coverage now, it will be as though it never existed.
Errors & omissions (E&O) policies are claims-made, meaning that coverage must be in force at the time of the claim to be covered. Even if your policy was active while you were working on the transaction, if a claim is brought against you after you’ve let your coverage lapse, it won’t be covered by that policy. Keeping your coverage is the best way to protect yourself against future claims.
2. Insurance protects your assets.
The average cost of a claim against a real estate firm is $15,000 when the plaintiff receives payment. Remember, even frivolous claims cost you time and money to defend yourself.
3. Who will be with you if a claim is brought against your firm?
When you’re a Victor policyholder and a lawsuit is brought against you, we’ll match you with a defense attorney who will fight for your reputation and pay defense costs. We also offer pre-claims assistance to help you deal with an issue or problem before it becomes a claim.
4. Staying continuously insured could reduce your costs.
Firms that renew their coverage may be eligible to receive longevity credits just for staying continuously insured in our program.
5. You may be obligated to have errors & omissions coverage.
Keeping up your E&O coverage is a good way to ensure you’re meeting your obligations and ensures that you’re eligible for business opportunities that come your way.
6. You get easy access to our risk management library.
When you’re insured with Victor, you get access to our risk management library which is full of important information to help you take control of your risk.
7. National Association of Realtors® REALTOR Benefits® Program partner.
Victor is REALTOR Benefits® Program partner and offers NAR members special pricing on real estate E&O insurance.
8. Victor has been providing errors & omissions to real estate professionals since 1983.
If you have a claim, you'll work directly with one of our expert claims specialists. Should the need arise, we will pay to hire a public relations specialist to restore your reputation in the community.* If you are injured or disabled while insured with Victor, you may be eligible for free extended reporting period coverage.* We also provide you with a toll-free hotline for advice and a wide range of risk management resources to help you avoid risk.
*Check with your insurance broker for state availability
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