Coverage under the Indemnity Plan is for claims arising out of errors by you “in performing or failing to perform real estate services for others.” “Real estate services” are defined in RESA (and the Indemnity Plan extends this to also include services in regard to disposing of or acquiring a business, with or without a real estate component, for a client). If claims are made against you for services that do not fall within this definition, you may not have coverage.
If you are giving advice or opinions on property values outside of a trade or prospective trade in real estate, you may not have coverage if you are sued for negligent advice. For example, if you are retained to provide an expert opinion to a lawyer on the value of property for use in a matrimonial or other legal dispute where there is no trade in real estate (as defined in RESA), you may not have coverage under the Indemnity Plan if you are sued for negligence in providing that opinion.
The Indemnity Plan also excludes coverage for claims relating to or arising out of activities as an insurance agent or insurance broker, builder, contractor, property developer, mortgagee, notary public, property appraiser or court-appointed administrator (Exclusion 2 of the Indemnity Plan). Licensees who take on these roles explicitly or implicitly are taking on additional risks beyond that of a real estate licensee. If you are engaged in any such activities, you should consult with an insurance broker about arranging insurance coverage that does apply.
