Real estate agents are in danger of being sued by their clients for a number of different reasons, and with errors and omissions insurance, many of the finanical liabilities of these claims are addressed. However, insurance can be a significant expense that takes a big chunk out of the budget. With a real estate E&O insurance per transaction policy, agents can avoid the upfront premium payment at the beginning of the policy and move toward a monthly payment option.
The Details of Payment
With per transaction coverage, the policy is customized according to the size of the real estate firm, the prior year’s revenue and the average price of transactions. The cost of coverage is then divided into a monthly amount that requires a minimum amount to cover at least one transaction a month. One benefit of this arrangement is that the monthly amount is calculated without interest; it’s not a finance payment plan.
The Details of Coverage
Per transaction coverage for errors and omissions is no different from the coverage that you would purchase on a typical E&O plan. It covers closed transactions, sales in process or claims on current properties. One risk of the coverage is failing to pay the monthly premium, as it could cancel coverage for any current or previous transactions.
This coverage can make E&O protection more affordable for the entire firm. Make the monthly payment to keep the policy active.