Your Errors & Omissions policy is a critical component of your business operation.
E&O premiums have risen significantly in the past few years due to increased litigation
against real estate firms. The following information will assist you in your efforts
to reduce your E&O premium.
Factors that Determine Your Premium
Underwriters will access the amount of risk your firms generates based on some of the
Residential vs. Non-residential activities (property management,
land/lots and commercial)-Anything outside of residential may result in a surcharge
to your premium.
Size of firm/Number of agents-additional credits available for larger firms.
Claims/Department complaints-less claims allow for more premium credit.
Total gross commision income-as your revenues grow your premium will increase.
Years of prior acts coverage-credits will apply for limited prior acts coverage.
Limits of Liability carried and deductible level-your premium will increase
for higher limits of liability and lower deductible levels.
Optional coverages-enhanced coverages/endorsements will increase your policy premium.
Risk Reduction Tools that Positively Impact Your E&O Rates
The following activities undertaken by the firm and its agents will allow for additional credits to your E&O rate:
Attendance of loss mitigation/risk reduction seminars