You and Your Professional Liability Indemnity Plan

William G. MacLeod, K.C.
March 2024

Hopefully you will never make a mistake or have someone accuse you of making a mistake in providing real estate services. If that happens though you should report the details to E&O right away as they can be a great help to you.

E&O is your friend and ally in seeking to protect you from the financial consequences of an error. How far E&O can go to assist you is set out in the Indemnity Plan.

Give notice immediately by email — to reception@reeoic.com — so that the staff lawyers at E&O can get to work for you. Provide a written statement of the circumstances and send copies of all the relevant documents to them.

E&O will need to investigate the claim to assess its merits and verify that it is a claim that is covered under the indemnity plan. E&O is obliged to investigate the claim fairly, and in good faith, in a balanced and reasonable manner.

Where there is a coverage issue you will be told about it. For example, if the claim is partly a dispute about commissions you will be told that this aspect of the claim is a matter for you to handle. E&O strives to treat everyone that reports a claim fairly, so that decisions on coverage are made in a similar principled way no matter who is involved.

For E&O to defend you properly you need to cooperate fully. Do not hold back on telling E&O or the lawyer representing you about any facts that go against you. It is only when you make candid disclosure that the right decisions can be made to handle your defence.

The success of the insurance program depends on everyone being careful in all their professional responsibilities as real estate licensees. When this is done everyone benefits from reduced claims and from reduced premiums.

Practice real estate safely and enjoy the many benefits of doing so.