Every agent needs errors and omissions (E&O) insurance. It offers protection from incurring costs due to accusations of inadequate work, negligent actions, and failure to provide the expected service. It will cover your defense and settlement costs and the time required to respond to a claim as well as the potential damage to your company’s brand and reputation.
Picking the right provider is important – you should find one with reasonable rates, reliable service, and a good industry reputation. We’ve reviewed the top E&O providers based on these factors – check out the analysis below to make the right choice.
Lloyds is an insurance and reinsurance market in London. It is a non-admitted carrier in 48 states and an admitted carrier in Illinois and Kentucky. It offers almost every type of business insurance except for life insurance, worker’s comp, and financial guarantees. The company was established in 1686. It quickly became a popular provider choice for merchants, sailors and ship owners. It now serves as a corporate umbrella under which syndicates write new properties. Lloyds is not technically an insurance provider. Rather, they act as an intermediary between clients and insurance brokerages. They decide which risks to cover on a case by case basis.
Nationwide is an American insurance provider and Fortune 500 established in Columbus, Ohio in 1926. It is known for being one of the largest and most diversified financial service organizations in the U.S. It provides a full range of products including auto, life, homeowners, business, pet, boat, motorcycle, and farm insurance, retirement plans, annuities, mutual funds, specialty and surety, and excess and surplus. In addition to getting service online, clients can also access Nationwide’s app. They can pay bills, and access policy documents and ID cards through the app. They provide quotes directly through their website. Nationwide has helped over half a million businesses find the policies that are right for them.
The Hartford was established in 1810 as a fire insurance company. They branched out when they wrote their first insurance for an institute for higher learning for Yale University. They even wrote a policy for Abraham Lincoln’s home. The company prides itself for its exceptional leadership. Its staff offers transparency, innovation, and integrity. They continually explore new opportunities for their clients. Hartford focuses on sustainability, diversity, and supporting their communities. They adapt to environmental needs. They built a workforce that welcomes all cultures and ideas. They provide resources that empower communities. The provider offers a variety of personal and business insurance with a focus on a variety of industries including real estate.
Chubb Insurance was founded in 1882 and claims to be the leading commercial lines insurer in the U.S. The company operates in over 54 companies and territories. They provide a wide variety of services including property and casualty insurance, life insurance, health insurance, and accident insurance. It’s status as an underwriter provides the company with insight to assume and manage risks efficiently. They pay claims fairly and promptly. They work with businesses of all sizes. Chubb has over $200 billion in assets and reported $46.8 billion in gross premiums in 2021. It received an AA financial strength rating from Standard & Poor’s and a A++ from A.M. Best.
Hiscox has over 3000 employees in more than 14 countries. They have over 500,000 small business customers. They are dedicated to their values of courage, humanity, integrity, ownership and connectedness.
Victor Insurance Managers claims it is one of the largest and most experienced underwriting managers of specialty insurance in the world. It is a leader in evaluating and underwriting risks, developing and executing risk management activities, and servicing accounts on behalf of their insurance carrier partners. They select leading carriers to partner with and act as the exclusive underwriter distributing their solutions through a network of licensed agents and brokers. The company strives to create superior products and offer exceptional service. Their mission is to provide superior value, service innovation and expertise, and establish themselves as leaders in their field. The company falls under the Victor Holdings Umbrella and has been focusing on underwriting for over 60 years. Victor’s offers a variety of insurance policies including auto, home, commercial and more. They put a special focus on real estate and are aware of the risks involved. They allow agents and brokerages to acquire and bind E & O new business policies in minutes 24 hours a day due to their innovative services.
Real estate agents and brokers who are more budget conscious, or other real estate professionals, such as: property managers, appraisers, auctioneers, commercial real estate professionals, leasing agents, mortgage brokers and title agents
Final Grade: A-E&O insurance is something no real estate agent should be without. The companies listed above will provide you with comprehensive coverage, fair pricing and convenient service. Which provider do you feel is best suited to your needs?
There are many instances where a realtor may need E&O insurance. Here are some examples of when it could come in handy.
Basically, your insurance will cover you in any of the following instances:
Basic E&O insurance will cover fees including
More extensive coverage is also available.
E&O insurance is mandatory in some states and highly recommended regardless of your location. If you work for a brokerage, the agency may have an insurance policy that covers you. If you work independently, you will need your own policy.
Our in-house real estate experts spent hundreds of hours researching, scoring, and ranking the top E&O insurance providers. We looked at everything from pricing, package options, and the coverage available. We’ve ranked and rated each company that offers E&O insurance on 7 different factors to come up with the very best providers. The short version of factors considered are:
About the Author
Jim Gray got licensed in 2013 and sold 57 houses in his first year. Over the next 6 1/2 years he went on to sell 437 homes with a small team. He went on to manage the lead generation department of the 13th largest expansion team at Keller Williams and designed lead generation and conversion systems for 60 agents in 7 locations in 4 states that drove 600 home sales in a 2 year period. Jim currently does real estate team development and coaching for some of the largest real estate teams in the country.
Last Updated: 4/19/2024
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