Errors and Omissions Insurance: What’s covered, what isn’t

The Real Estate Errors and Omissions Insurance Corporation (more commonly known as E&O) provides protection from claims for error, omission and negligence against real estate licensees while they provide real estate services.

Highlights of the Indemnity Plan (the insurance policy), which is mandatory:

  • $1,000,000 in coverage, which includes deductibles and defense costs.
  • $350 per year annual premium (due upon license renewal every two years).
  • $2,000 deductibles per licensee (only paid if E&O pays damages on the licensee’s behalf).

The Indemnity Plan doesn’t apply to:

  • situations in which licensees buy or sell their own property,
  • fraud and/or intentional acts,
  • Real Estate Council of BC complaints, or
  • Commission disputes.

A new video from E&O describes the plan and offers an overview of the organization for REALTORS®. For the video and more information, including the entire Indemnity Plan and how to report a claim, go to www.reeoic.com and use the password: eno.

This article originally appeared in BCREA’s June 2017 eBulletin.