THE IMPORTANCE OF REAL ESTATE E&O INSURANCE We all know insurance is important. There is a reason we have coverage on our health, homes, and lives. We understand why brokers in Colorado are required to carry Errors and Omissions insurance.
Over the past five years, the average amount paid on an E&O claim in Colorado was $12,688,595.00. This includes all fees and legal expenses incurred defending claims. The total paid claims against REALTORS® annually is well into the millions of dollars.
the Colorado REALTOR® E&O Program. The Williams Underwriting Group policy gives you superior coverage and increased limits over base minimum coverage. And because you’re a CAR member, you automatically qualify for the Additional Coverage’s Endorsement (a $40 value at no additional charge). This endorsement gives you policy features you wouldn’t otherwise have access to without additional premiums, including coverage for sale of owned residential property subject to conditions and defense regulatory complaints and higher limits for fair housing.
If E&O insurance is so important, why do so many brokers buy the minimum coverage to protect themselves? Most of us don’t go out and buy the cheapest possible health insurance. We know that if we ever truly need to use it, we’re going to want the broadest coverage the market has to offer. E&O insurance should be thought of in the same terms as protecting your health.
You may be thinking that you’ll just stick with the basic coverage because you’ve been brokering real estate transactions for many years and you’ve never had a claim. Claims are much more common than most brokers realize. Most of our claims come from licensees who have never had a previous claim.
Eight plus years ago, the Colorado Association of REALTORS® teamed up with Williams Underwriting Group to create
Please keep in mind one of the main reason’s claims are denied is the allegations made against a licensee are not covered. You owe it to yourself to have the broadest coverage possible to limit the possibility of a claim not being covered. If coverage is denied, you are left to pay legal fees and any settlements or damage awards on your own. This could have severe financial implications for you. CAR works on an annual basis with our partners at Williams Underwriting Group to identify market needs and provide our members affordable access to superior coverage. The result is better coverage for your dollar and professional peace of mind. Please contact Williams Underwriting Group at 1-800222-4035 or email us at wug@wugieo.com with any questions concerning your Colorado E&O Insurance.
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