Axis Insurance Real Estate E&O FAQs
What is the difference between claims made and occurrence policies?
Almost all E&O policies are either Claims Made or Claims Made and Reported. This means that the policy that would respond to a claim would be the policy in effect when the claim was made against the company or made against the company and reported to the carrier. To understand more about claims made policies click here.
Are independent contractors covered?
Independent contractors working on the behalf of an insured can be covered under most policies. Typically, such coverage requires a written contract, an obligation to indemnify the independent contractor, and the contractor works exclusively for the insured.
What if I own multiple entities?
Companies under common ownership can often be insured on a single policy. Companies with similar but not the same ownership may want to consider separate policies given differing fiscal interests. Subsidiary companies are often automatically covered; however, they may need to be scheduled separately depending on the carrier.
What if I provide services for properties I own?
Most carriers exclude coverage relating to any property, where one or more insureds may have a financial interest. Some carriers will provide this coverage, if requested and underwritten. You should work with a qualified broker to properly structure a policy to cover this risk.
Can I cover construction management?
Yes. Oversight of tenant renovations can often be covered in a real estate E&O policy. Construction management for third parties for a fee can be covered on a standalone construction management policy.
What if I operate in multiple states?
Real estate E&O policies will typically cover your professional services in any location you are licensed to do business in. However, many states have their own requirements for real estate agents to carry E&O insurance. You will need to check with the state you are doing business in to determine if your policy complies with state guidelines.
What if I am an agent working for a company? (Am I covered?)
Real Estate E&O policies typically cover owners, employees, independent contractors, leased and temporary employees as insureds. However, some companies may choose not to extend coverage to non-employees. Further, some insurance companies will only add non-employees as insureds for an additional premium or not at all.
Can I get coverage if I have been sued?
Yes. Premiums are based on several factors in addition to claims history, including:
- Areas of Specialty
- Number of Employees
Underwriters take into consideration the frequency and severity of claims as well as how long ago the claim occurred and any new procedures you have implemented to reduce exposure.
Do I need a broker?
Axis Insurance Services is a licensed broker. There are markets that may sell directly to consumers, however, use of a licensed broker knowledgeable of all aspects of Real Estate E&O is always recommended.
What does an E&O Policy cover?
An E&O Policy provides coverage for legal and indemnity costs for defending an allegation of negligence in the provision of your professional services. Common coverages include:
- Defense costs
- Indemnity costs
- Fines and penalties
- Disciplinary proceedings
- Pre and post judgement interests
Do I have to be licensed as a real estate professional to get E&O coverage?
Typically, real estate agents and brokers must be licensed to secure E&O coverage. Real estate consultants not acting in a capacity as an agent or broker may be eligible for coverage.
Can I buy real estate E&O as an individual?
Yes. As a licensed professional, you can obtain E&O insurance, however, our firm primarily only insures companies.