Using Your Errors and Omissions Insurance to the Max
Unfortunately, our society is becoming more litigious and real estate professionals are finding they are not immune from this trend. While most licensees are familiar with the use of their Errors & Omissions (“E&O”) Insurance in the event of lawsuits, they are not aware of the other valuable uses of these policies. Many E&O policies will provide “Pre-Claim Assistance”.
At the Insurance Company’s discretion, the Company will pay Pre-Claim Expenses for a potential claim reported prior to the date that any lawsuit is filed. Unlike coverage which is offered after the litigation commences, payment of Pre-Claim Expenses is generally not subject to a deductible and does not reduce the applicable Professional Liability Coverage Limits. In other words, this service does NOT cost the licensee any out of pocket cost until a lawsuit is filed.
It may surprise you to know that complaints filed with the Nevada Real Estate Division, GLVAR® and demand letters from attorneys threatening litigation fall within the scope of Pre-Claim Assistance offered by these policies. It may also surprise you to learn that under most policies the Insured has the right to select their own counsel rather than be assigned an attorney by the Insurance Company. Our law firm focuses on the representation of agents and brokers before the Nevada Real Estate Division and GLVAR and has counseled real estate professionals for 20 years.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.
