E&O
One brokerage I'm looking at has zero deductible which is important to me but I fear there fees are too high (200 with E&O). I can't any info on Keller Williams's E&O or what there desk fees include and they wont tell me since I just start school. My question is, How do the big firms hand E&O (Deductible etc)? Could I carry A secondary policy to Cover the deductible? I'm in CA if that helps.
I'm not versed in E&O at all, but I think you're asking if you can have a policy with a deductible and another policy that pays the deductible for the first policy.
Essentially, policy A pays everything above $X and policy B pays up to $X.
Again, not sure how E&O insurers offer policies, but I'm almost positive you're not going to be able to get those 2 policies any cheaper than 1 policy with no deductible. You would essentially be paying for a no deductible policy but 2x the overhead, admin, profit, reserves, etc. that the policy writing company collects on top of what they need to pay claims.
Hope that helps a bit.
E&O is errors and omissions insurance. It's typically necessary for engineering and design firms to insure against mistakes made in a design that causes injury to people. Why do you need E&O? Is this something real estate agents typically have? Not sure why they would.
On the other question, supplemental insurance policies are common in some industries. You can have a supplemental health insurance policy that covers what ever isn't covered by your primary insurance policy. I would suppose that you could do the same with other kinds of insurance.
@Account Closed Interesting question, and one I've never heard posed before. I don't believe that you would be able to obtain a secondary policy that would pay for your deductible on your primary policy. Perhaps someone who writes E&O policies will advise.
Even with umbrella policies, oftentimes they will still require a "deductible" of sorts before they pick up any additonal coverages that the primary policy doesn't cover. So if your primary policy was exhausted, but there is still exposure, the umbrella would pick up the remainder after you pay a 1k or 5k (or other amount). Not exactly the same thing, but I can't imagine another policy paying the deductible for a primary policy. I'll be curious to see if anybody has seen this before.
@Wade Sikkink Realtors are required to have E&O insurance; it's called Professional Liability insurance.
The E&O company I use waives the deductible on specific transactions when you pay for a home warranty through one of their providers at time of close. So if you're the listing agent it could be a nice little bonus you can offer to the buyer and if you represent the buyer then you'd be hooking them up with a nice closing gift in the form of the warranty. The E&O provider I use is Cress, they're very affordable too. PM me if you'd like a referral to a sales rep.
It looks like you are asking about E&O insurance for yourself when you become a real estate agent for Keller Williams. The group policies are usually good and have lower rates because of the buying power and the master policy for Keller Williams. You can buy coverage on your own if your not comfortable with the coverages provided by the Keller Williams policy but the odds are that it will be significantly higher.
@Chanté Owens It's not a legal requirement in California to carry E&O, but a brokerage specific item so you're pretty much right that all Realtors will carry E&O insurance. I'm an independent broker and don't force my salesmen to carry E&O but there is a per transaction cost they pay for the coverage my E&O policy provides.
@Jesse Gonzalez Thanks Jesse. My friend who is a realtor in CA has E&O as well as my friend who is a realtor in AZ has E&O. I know it can be state specific, but from the ones I know of or have spoken too, they have it. Maybe they just want to be safe.
My E&O at KW is $30 a month. That's for NJ. Not sure if its the same in California but that's all it is here in NJ.
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I am required to carry E&O insurance as a P&C Insurance Broker/Producer and it's around $100-180 per month, depending on limits, etc.
Thanks guys, I guess my only questions now are the deductibles with the major firms (kw in particular) very high? Does it depend on the individual franchise with the company? Or is company wide?
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Do things right, and the deductible is irrelevant. I don't think the deductible will vary much from firm to firm. I actually have no idea what mine is.
Wayne, so true!
I'm in Wisconsin and I would reasonably assume prices are area dependent but I work with a K&W agent @Ramon Jenkins. Maybe he can help.
I believe here in Cheeseland about $200 per year for E&O
Do not quote me , @Account Closed
J Scott once told me their fees our high
and now I can agree.
Deductibles I have no ideal for California, fyi