What do you think a registrant will do if .....

• They are being sued for damages in the amount of $2,500. and

• Their error & omission insurance policy has a $2,500. deductible provision and

• Their insurance company believes it’s better to settle the claim, rather then to go to trial

• Will the registrant fight the claim themselves, or

• Will the registrant hire a lawyer. or

• Will the registrant simply get out their cheque book and write a cheque.

Personally, I would like to think that there are twenty-five hundred good reasons to avoid and/or reduce the elements of risk and that there are better ways in which one could spend their time and money. BE ALERT

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant urisdiction to ensure accuracy before acting on this information .

The costs of litigation and defense is very high.
Given that the basic deductibles are at $2,500,
When Lawyers sue; they sue all parties involved in the transaction.
While you may have no direct input to the events that caused the lawsuit, I have witnessed some strange proportional liability decisions.

That said $ 2500 is cheap to be removed.
Will the newly licenced paralegal be equipped to defend you against a seasoned trial lawyer?

I'm not in a Canadian Province . . . . Is Vermont close enough?



Isn't that always their suggestion; especially when the Policyholder is paying 100% of the Freight ?

One of the first questions a claims adjuster ask's himself, is "what is this going to cost us, minus the deductable" and then his decision is influenced by the remaining liability.

A $5,000 claim with a $2,500 deductable would only cost the insurance company $2,500 and they would probably go the settlement route.

One of the points I was trying to make was that any claim will probably end up costing a registrant money and on January 1, 2010 with the limit on Small Claims Court cases rising to $25,000 the number of claims involving real estate agents may increase.

Time will tell.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .