Liability insurance is one of the costs of doing business. In an increasingly litigious world, errors and omissions insurance may provide a firewall for brokers and agents.

Errors and omissions insurance provides comprehensive protection for real estate agents and brokers. It is the equivalent of the professional liability insurance carried by physicians, attorneys, architects, and other professionals who have seen significant increases in liability claims in recent years.

While more and more real estate companies are realizing the necessity of carrying this type of insurance for their licensees and other employees, many real estate professionals are still operating with no professional liability coverage. If a claim is filed against an agent who doesn’t have E&O coverage, the result can be professionally and financially disastrous. Common claims filed against real estate professionals range from misrepresentation of a property’s physical condition to failure to negotiate a sale.

"All E&O insurance differs in the range and quality of its coverage and administration," says Dave Crawford, senior vice-president of sales for American Home Shield. "Real Estate brokers and agents are primarily concerned, as they should be, with selling homes. They are typically not experts in what type of insurance they need to protect themselves from the increasing onslaught of after sale claims and lawsuits."

American Home Shield is introducing a new E & O insurance program for agents and brokers through partnerships with Fireman’s Fund Insurance Company , which insures the policies, and Cal-Surance Associates, Inc. which administers and services the accounts. Cal-Surance currently has over 100 programs that insure nearly 100,000 real estate brokers and agents, life insurance agents, property and casualty insurance agents, and financial professionals.

According to Crawford, the new E&O partnership will provide better service along with lowered premiums. The company plans to offer the insurance along wit h its home warranty packages as a risk management strategy for agents and brokers.

The E&O policy offered by American Home Shield includes:

• "A" rated insurance carrier
• First Dollar Defense coverage
• Discrimination and Pollution coverage
• Insured owned property coverage

The program also offers Seller E&O coverage, reduced deductible options, dedicated claims management support, available customized risk management seminars, and a simple application process.

Real estate professionals can get more information about this program by calling American Home Shield at 1-800-735-4663.

Published: November 24, 1998

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.