References
has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
NAR REALTOR Benefits®
Victor Insurance Managers LLC and the National Association of REALTORS® have partnered under NAR REALTOR Benefits® to provide a first-class E&O insurance program to REALTOR® members. Victor is one of the largest and most experienced underwriting managers of specialty insurance programs in the world, serving more than 46,000 policyholders in various specialty industries through independent insurance agents and brokers.
To learn more about Victor’s Real Estate Errors & Omissions Insurance Program, take a look at their program brochure or call 888-429-6638. Be sure to mention that you are a member of the National Association of REALTORS®.
Some state associations also have carriers they recommend (check with your state association for this information).Please see this list for additional .
Use of E&O Insurance in Real Estate Firms
Source: 2023 National Association of REALTORS® Profile of Real Estate Firms
E&O Insurance Basics
E&O Insurance: Coverage & Costs (Forbes Advisor, Nov. 2, 2023)
Depending on the claim, you could face disciplinary hearings from a regulatory or licensing board. As you defend yourself against an errors and omissions lawsuit, you could also incur a loss of earnings for your time spent in court and on depositions. Errors and omissions insurance helps pay for all these costs.
Errors and Omissions Insurance: Your Complete Guide (REthority, Oct. 26, 2023)
If you live in a state that requires you to have your own E&O insurance (which is covered in the next section), then you must have your own in order to maintain your real estate license.
Errors and Omissions Insurance (E&O): What It Covers (Investopedia, Jul. 24, 2023)
These policies do not cover criminal prosecution and certain liabilities that may arise in civil court not listed in the policy. This includes illegal acts, intentional deeds of wrongdoing, or criminal activity. E&O insurance often does not cover bodily injury inflicted by your business as that is typically covered by general liability insurance.
Frequency and Severity of E&O Lawsuits Against Real Estate Professionals Have Increased (RISMedia, Jan. 27, 2023)
It’s crucial that your E&O policy has a limit of liability large enough to cover the total cost of a property that your client has purchased. If you typically sell $500,000 homes and you’re now selling a $1,000,000 home, you’ll be underinsured if your coverage limit isn’t equal or above the value of the property sold.
Choosing the Right Coverage
What Is E&O Insurance? (For Realtors & Real Estate Agents) (Market Leader, Jun. 12, 2023)
Look over this part carefully. Exclusions aren’t necessarily bad – it’s part of what keeps insurance affordable, though you may need to line up other insurance coverage to plug any risks that fall under your E&O carrier’s exclusions.
Errors and Omissions Insurance: What You Need to Know (AgentSync, Mar. 7, 2023)
An errors and omissions insurance policy will generally cover the business owner along with all salaried and hourly employees of the company. Most policies also extend to provide coverage for any subcontractors you have working on behalf of your business.
How to Compare Errors and Omissions Insurance Quotes (TechInsurance)
Insurance companies are typically ranked A to E, with A as the top rating. The higher the rating, the more financially stable the carrier. That's why you usually want to buy errors and omissions insurance from a carrier rated A or better.
Risk Management for Brokers
Midsize Businesses Face Full-Size Risks (Best’s Review, Nov. 1, 2023) E
The specific concerns of midsize companies will vary depending on the industry. But a common, and growing, concern that is threaded throughout nearly all industries is the rise in exceptionally high jury awards.
Hot Topics in Broker Risk Reduction (National Association of REALTORS®, Nov. 2023)
Avoid using AI to draft contracts, modify standard forms, or provide legal advice to clients. Instead, seek appropriate advice from actual professionals.
Tips for Managing Risk & Managing Reputation Bundle (Digital Download), (National Association of REALTORS®) Item #135-101
This unique combination of eProduct's was specifically created for you to help manage risk. This combination bundle will help you succeed with social media and will also help you make the right E & O insurance decisions.
eBooks &Other Resources
The following eBooks and digital audiobooks are available to NARmembers:
Complete Book of Insurance (eBook)
Books, Videos, Research Reports &More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
The No-Lawsuit Guide to Real Estate Transactions (New York, NY: McGraw-Hill, 2007)
Risk Hotline for Real Estate: Learn from Actual Agent Experiences Before They Happen to You! (Seattle, OR: Classic Day Publishing, 2005)
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsem*nt by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
