Axis Insurance Real Estate E&O FAQs

Almost all E&O policies are either Claims Made or Claims Made and Reported. This means that the policy that would respond to a claim would be the policy in effect when the claim was made against the company or made against the company and reported to the carrier. To understand more about claims made policies click here.

Independent contractors working on the behalf of an insured can be covered under most policies. Typically, such coverage requires a written contract, an obligation to indemnify the independent contractor, and the contractor works exclusively for the insured.

Companies under common ownership can often be insured on a single policy. Companies with similar but not the same ownership may want to consider separate policies given differing fiscal interests. Subsidiary companies are often automatically covered; however, they may need to be scheduled separately depending on the carrier.

Most carriers exclude coverage relating to any property, where one or more insureds may have a financial interest. Some carriers will provide this coverage, if requested and underwritten. You should work with a qualified broker to properly structure a policy to cover this risk.

Yes. Oversight of tenant renovations can often be covered in a real estate E&O policy. Construction management for third parties for a fee can be covered on a standalone construction management policy.

Real estate E&O policies will typically cover your professional services in any location you are licensed to do business in. However, many states have their own requirements for real estate agents to carry E&O insurance. You will need to check with the state you are doing business in to determine if your policy complies with state guidelines.

Yes. Premiums are based on several factors in addition to claims history, including:

•  Revenues
• Areas of Specialty
•  Number of Employees

Underwriters take into consideration the frequency and severity of claims as well as how long ago the claim occurred and any new procedures you have implemented to reduce exposure.

Axis Insurance Services is a licensed broker. There are markets that may sell directly to consumers, however, use of a licensed broker knowledgeable of all aspects of Real Estate E&O is always recommended.

An E&O Policy provides coverage for legal and indemnity costs for defending an allegation of negligence in the provision of your professional services. Common coverages include:

• Defense costs
• Indemnity costs
• Fines and penalties
• Disciplinary proceedings
• Pre and post judgement interests

Typically, real estate agents and brokers must be licensed to secure E&O coverage. Real estate consultants not acting in a capacity as an agent or broker may be eligible for coverage.

Yes. As a licensed professional, you can obtain E&O insurance, however, our firm primarily only insures companies.