Insurance: Why you need it

As a real estate professional, being sued for doing your job can be emotionally upsetting and financially devastating. Even if a claim against you is eventually dismissed, the cost of successfully defending a lawsuit on your own can be a huge burden.

In our increasingly complex world, individuals turn to professionals to help them with many aspects of their lives, including real estate.

They expect professionals to know their business and protect them, partly because professional groups promote themselves on the basis of their expertise. When consumers are disappointed, they often blame the professional who advised them. The courts support them by holding professionals to a high standard of care.

The benefits of self-insurance

Like other professional organizations, the BC real estate industry has turned to self-insurance for errors and omissions protection, keeping costs lower as the coverage is provided on a not-for-profit basis.

Besides protecting members, self-insurance also demonstrates that our industry is committed to professionalism as we are prepared to accept financial responsibility for our members’ errors and omissions.

The cost of your insurance directly reflects E&O’s overall claims experience. In other words, if all licensees perform their duties with skill and professionalism, you’ll pay lower premiums.

Reporting a Claim – reporting a claim immediately is important to the claims process and maintaining coverage.

Excess Insurance – ensuring licensees have adequate coverage for the risks they face is important, and requires a regular review.

Refunds – this quick summary highlights the process for some licensees to obtain a refund if they’re surrendering their licence.

Resources – a comprehensive overview highlights the protection offered by E&O, the Real Estate Compensation Fund and commercial insurance policies.