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.

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.

Eight plus years ago, the Colorado Association of REALTORS® teamed up with Williams Underwriting Group to create

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.

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.

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 1-800- 222-4035 or email us at wug@wugieo.com with any questions concerning your Colorado E&O Insurance.

Do you or your firm have adequate limits of coverage for large transactions?

Excess Coverage. for claims against an insured for discrimination in the The excess policy provides additional limits of liability performance or failure to perform professional services. over a firm’s or individual’s underlying insurance. If a We also offer a Real Estate Sales Ownership Interest claim is covered under the underlying insurance the Coverage Extension endorsement for the sale of owned excess policy will provide additional limits up to the real property, residential or commercial, including limit chosen, in the event the underlying limits have investment property, in which a licensee or spouse of a been exhausted.Example: A licensee’s underlying limits licensee has more than 25 percent financial or ownerof liability are $100,000 per wrongful ship interest. The policy limits of liability act. A covered claim is made and applies, there is no sublimit limitation. A damages of $200,000 are awarded to It’s easy to increase your $5,000 deductible applies to damages the claimant. The underlying insurance will pay $100,000 with a $1,000 limits of liability. only (not defense expenses) under this endorsement deductible being paid by the licensee. To request an application The excess policy will pay the remaining $100,000 of damages with a $0 Contact US AT How do I obtain a quote for deductible applying to that payment. wug@wugieo.com Excess Coverage? Who does the excess policy Or call 1-800-222-4035. The Excess policy premiums are determined on an underwritten basis and are cover? in addition to the premiums paid for the The coverage is for real estate firms whose licensees are completed to obtain a quote for the excess coverage. all insured through our underlying insurance policy as provided by Zurich American Insurance Company. The Contact WUG at 1-800-222-4035 or send an email policy covers the firm, licensed agents, and unlicensed to: wug@wugieo.com to request an application. assistants while performing professional services on Williams Underwriting Group, (WUG) is the industries behalf of the real estate firm. Protection also automatitrusted source for excess coverage. WUG underwrites cally extends to franchise grantors. and prices the excess coverage on behalf of the carrier, Zurich American Insurance Company. This allows us to What are the limits of liability? liability needs. Excess limits of liability available are: $1M/$1M, $1M/$2M, $1M/$3M and $2M/$2M. In addition to higher limits, the excess policy automatically includes EXPERIENCED PROFESSIONALS WORKING FOR YOU! coverage for: (1) Environmental Hazards claims up to a sublimit of $100,000 for claims against an insured seeking damages for failure to advise of the existence of pollutants, asbestos, radon or lead and (2) Fair Housing discrimination claims up to a sublimit of $100,000 underlying insurance. An excess application must be respond quickly to your excess real estate professional