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.