Hi everyone,

I'm a broker in San Francisco and opening an office. What are the most reputable real estate e&o companies in terms of both prices and payment of claims?

I'm also debating whether I should pay for it or pass on the cost to the agent(s). What are your thoughts?

Finally do some e&o companies charge per transaction? (need to preserve cash until the company takes off)?

Thank you!

Since it's protecting you from the errors and omissions made by yourself, and vicariously by the others . . . . You'll pay for it; and then possibly, pass some of the costs along to others.

SanFran - Not to be critical, but if the cost of E and O is an issue, maybe you should look at your whole business plan. Sit down and look at all of the costs of opening and operating and then add about 50% to that number. There are going to be monthly recurring costs that need to be paid before you ever cash that first commission check.

Our price was cheap the first year because there was no sells for the company

Lots of E & O insurance providers- I works for CRES- an MGA in San Diego. I can quote on Per Transaction or annual. Per Transaction has lower start up costs but may cost more over a year time. There is a one per month minimum payment. The policy will cover you as broker if you are a sole proprietorship, or the corporation. You can charge your agents as you wish.

Hello,

I would suggest that you contact a local independent insurance agency in your area and ask them if they represent E&O carriers like-Travelers, Hartford, Admiral, Hiscox to name a few. Not all E&O carriers offer the same coverages--You need to ask questions like -- coverage for discrimination, lock box, pollution, mold, agent acting as his own agent, are defense cost inside or outside policy limits, does the policy cover Duty to defend... E&O is one of the most important insurance needs for you business. Choose based on coverage not price..Best of luck

Seems like a good place to start looking for E&O. If you need to save some money on start up then a per transaction at first may be the way to go.

We use CB Malaga Insurance Services and they were able to get us E&O quotes from multiple insurance companies.

You want to work with an insurance broker not an insurance agent who's going to push their insurance company.

They were great to work with and I recommend them.

Their info:

CB Malaga Insurance Services
877-245-5887
www.reproinsurance.com