If you were to break down your E&O costs by the transaction... what would the average amount be? Around $35-40 per transaction? Does this sound about right or is yours higher or lower?

My E&O is $35/month.

Spencer,

What about per transaction? Are you the broker or are you an agent that pays that to your broker and do they subsidize your E&O?

I'm an agent. I use to pay $25/transaction. I think my broker was tired of caring new agents that weren't producing so they changed it to $35/month. I like the per month deal better. Especiallly since you are covered whether you complete a transaction or not, it makes more sense to me to pay per month. Hope this answers your question.

Thanks. I am trying to nail down an average cost to the broker/owner for E&O on a per-transaction basis and I suspect that at $25.00 per trans. they were covering some of the cost... same as at $35/mo.

I don't know about covering the cost? How many agents do you have? We have between 75-80. Maybe that will help you.

The broker I work for charges us $175 per transaction for E&O. I think this is too high but I'm not calling the shots.

For what its worth

I can tell you last year the unit cost for myself alone as broker/owner with only and assistant was $19.05 per transaction file for REO E&O. Presently it stands at $23.53 per transaction.

The varying E&O transaction cost is inverse to the volume of transactions I close. I suppose if I did enough transactions a year it could be $1 per transaction file.

Yor

Roy, uh, I mean Yor, are you dyslexic?

Drawkcab sepyt tsuj eh, on

So who does everyone use for their E&O carrier?

I use CRES

I was just having this conversation with my office manager and I thought it was unfair that the agents that "sell" pay MORE in E & O because it is charged per transactions. Soo next year if my E & O is $2,000 and there is 20 agents I will divide it by everyone rather u sell 1 or 2 and we will split it. It is the cost of doing business. Any new agents will pay per transaction until the next year rolls around and they are with us for 1 Full year. That is fair.

I use Williams Underwriting (http://www.wugieo.com/) and I want to pay it myself, anything else is not fair.
When closing about 50 transactions a year and paying $25 per transaction years ago, was definately not fair.

Oh that is high. My last broker charged $35 per transaction, which made the top seller carry the rest of us, but where I am now we page every six months. It's about 400 total.

at the office i'm at we pay about $20 a month per agent

If you really want to know how much it is, call your BPO provider and ask for a quote.

I got a quote a while back and it is based on the production of the office the year before.

My quote I got was for a brand new office with less than 12 agents, the office located in SC and the quote was about $1000 a year

I haven't started yet, I need to take my licensing exam. But the broker I talked to said that I would pay a proration of $549.00 So I am assuming that the area where I am, we would be paying quarterly?

Just got my premium notice for 2008 of $699. That probably doesn't mean much to anyone without knowing the deductible and/or the coverage limit. As for a cost per transaction I haven't a clue as I don't know how many transactions I will have next year.

CRES --- Bob Cooper $98 per transaction, I am upgrading to regular policy,

Their home warranty is through Land Am and they waive deductible should you have a problem.

Per transaction gets expensive.

I will be getting quotes soon.

The policy charge in isolation means little.

For clarity, please specify what your limits are and the deductible, ie. $100,000 coverage and $1000 deductible.

I'll lead off. We use St. Paul. Our policy is for $1,000,000 an agent and the deductible is $1000. It also covers the sale or purchase of property by our agents. A policy for 110 agents runs $16,000.

I need to get quotes for E&O. Anyone have contact info and what questions to ask. Thanks!

I bought mine from http://www.cresinsurance.com

What are annual rates you are paying, In CA, I also have CRES, I am on $98 per transaction,
1 million, 2500 deductible waived if you use their home warranty from land america. covers a couple agents.

That gets pricey quickly.

I use Cres insurnace Bob Cooper

as an agent i pay 190 a year

I use Rice Insurance. I pay $243 a year for my company that I own. I then pay $243 for my personal O & E insurance. My broker associate is under me pays $243 as well for his own policy from the same company. This covers all transactions in a year. So I guess we are fortunate here in Colorado that our O & E insurance isn't as much as other states. Oh and on our policies you can add more coverage if you think you might want to do something illegal in the coming year. Or if you are prone to misleading the public and lying to clients.

You might want to try your state association. They should have a discount program with one or more carriers. State Farm writes E&O for brokers as do a great many other carriers.

Does the cost vary on years of experience and the amount of agents?