California E&O Insurance for Real Estate Agents and Brokers

We offer errors and omissions (E&O) insurance to California real estate agents, brokers, and firms. We also offer all other business coverages that California real estate professionals might need, such as workers' compensation, general liability and office packages.

Please visit our real estate website www.reproinsurance.com for more information and to access our insurance applications.

Real estate errors and omissions insurance is designed to provide protection to California real estate agents and brokers in connection with the performance or professional real estate services. E&O insurance is not designed to provide protection in cases where the insured injures someone or causes property damage as these types of claims are covered under general liability insurance.

E&O insurance policies are provided on a claims made basis which means that the policy in place when a claim is reported handles the claim, even if the act, error or omission that gave rise to the claim took place under a different policy. An important caveat is that the act, error or omission must have taken place on or after the current retroactive date. In order to keep their prior acts coverage, California real estate agents and brokers must therefore keep the same retroactive date at policy renewal, even if they switch carriers. A lapse in coverage usually results in a reset of the retroactive date.

California real estate E&O insurance policies pay for the damages and defense of covered claims in excess of the deductible, up to the policy limit. Some real estate E&O insurance policies also provide additional coverages, which may be subject to a lower policy limit, such as:*

• Lock box: Coverage for claims resulting from the insured's use of a lock box
• Open house: Coverage for claims resulting from the holding of an open house
• Discrimination: Coverage for claims of discrimination against the insured
• Disciplinary actions: Coverage for expenses to defend an insured in connection with disciplinary actions
• Expense reimbursement: Coverage for loss of earnings in connection with the insured's attendance at legal proceedings at the request of the insurance company

* Please note that the above coverages are not offered by all insurance companies. California real estate agents and brokers should review the E&O insurance policy coverage before making their selection.

Real estate errors and omissions insurance policies contain multiple exclusions which limit the overall coverage provided. Some of the common exclusions are as follows:

• Bodily injury or property damage
• Real estate properties owned by the insured
• Intentional, fraudulent, dishonest, or criminal acts
• Any guarantees or promises of future valuation, status or performance
• In any way involving contamination, pollutants, fungi, or bacteria
• Made by an insured against another insured under the same policy

Exclusions vary widely by insurance company and should be carefully reviewed by California real estate agents and brokers.