Professional Liability Insurance For

Real Estate Brokers & Owners




Q. Does this policy provide E&O coverage for all the agents in the office?

A. Yes, coverage is afforded to all the agents placing transactions through the Named Insured, as per the policy states.​


Q. Is this a group policy?

A. This is a group policy. All eligible NEA members who elect coverage become automatic members of Arthur J. Gallagher Real Estate Risk Purchasing Group, LLC  and are enrolled under a master policy (including its terms, conditions and exclusions). Each insured enrolled in the program has a $1,000,000 per claim / $1,000,000 aggregate limit. The aggregate limit for each Insured is the maximum amount of money that the policy will pay out in one policy period for each insured. The master policy does not have a policy aggregate limit.


Q. Who is an Insured and what activities are covered under the program?

  1. Services as a real estate agent, real estate broker or real estate personal assistant for residential real estate sales (1-4 Units), commercial real estate sales (includes 5+ Units), residential or commercial real estate leasing services, and raw, vacant or partially developed land sales only;
  3. Services as a real estate consultant or counselor or as an expert witness, provided that such services are limited to the services specified in (1) above;
  5. For an additional premium as shown on the Named Insured Member Declarations, services as a real estate property manager for residential and commercial property;
  7. Services as a member of a real estate accreditation, standards review or similar real estate board or committee;
  9. Services as a notary public.

Q. Are the licensed and/or unlicensed support staff covered under this policy?

A. Licensed and/or unlicensed support staff or administrative employees are also insureds under this policy, but only while acting on behalf of the Named Insured Member while providing covered Professional Services.


Q. What type of E&O policy is being offered here?


A. This is a Claims-Made and Reported policy. This policy covers only claims first made against the insureds during the policy period or optional extended reporting period, if applicable, and reported to the insurer in writing as required and as soon as practicable but in no event later than the end of the policy period or optional extended reporting period, if applicable.


Q. What is E&O Insurance?


A. Errors and Omissions (E&O) insurance is commonly known as professional liability insurance. It is a form of liability insurance that helps protect individuals and companies frombearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit for professional services provided.


Q. What does E&O insurance cover?


A. E&O insurance provides coverage for claims, including lawsuits for the professional services and advice that your company provides. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. This type of insurance is commonly used to pay for the defense costs to defend and represent the insured, including when legal action turns out to be groundless.E&O policies may also provide monetary payment to third parties in the settlement or judgment of a lawsuit.


Q. Why do you need E&O insurance?


A. E&O insurance is required by law in some areas for certain kinds of professional practice, and is also sometimes required under contract by other businesses that are the beneficiaries of the advice or service. If you provide or have a professional advice and service-providing business, having errors and omissions insurance coverage should be an integral part of protecting your business. Accusations of negligence or the failure to perform your professional services are areas that any business can be sued for, even if a mistake has not been made.


You should seriously consider this coverage if your business: provides a professional service, regularly gives advice or is “required by” to have E&O insurance.


Q. What does an “Admitted” carrier versus a “Non-Admitted” carrier mean?


A. Surplus lines insurance is insurance placed with a non-admitted insurance carrier. The term “non-admitted” refers to the fact that the insurance carrier generally does not hold a license to do business in that state. States have various rules regulating the placement of insurance with non-admitted carriers.    
    Surplus lines insurers are exempt from rate and form filing requirements for the states in which they operate as a surplus lines insurer. However, surplus lines insurers are not totally exempt from State Regulation. They are regulated by their state of domicile, and except for the exemption from rate and form filing, states regulate surplus lines insurers in many ways including but not limited to the following: insurability, advertising, multi-state risks, cancellation and non-renewal laws, and unfair and deceptive claims handling procedures.


Q. Does this coverage apply to “prior acts”; Wrongful Acts committed prior to the Effective Date of the policy?


A. “Prior acts” Coverage is for Claims resulting from Wrongful Acts committed by the Named Insured Member on or after the Retroactive Date. Coverage is afforded with proof of first date of continuous errors & omissions insurance.


Q. What is a Retroactive Date?


A. Retroactive Date is the date the Named Insured Member first obtained E&O insurance and since has continuously maintained that coverage.


Q. What if I want to cancel this policy?


A. You may cancel your coverage by surrendering your Named Insured Member Declarations to Liberty Surplus Insurance Company (LIU) or by giving written notice to LIU stating when thereafter such cancellation shall be effective. If you elect to cancel your coverage, LIU shall retain the customary short rate proportion of  the premium hereon, except as otherwise provided in this Policy. If your coverage is cancelled by LIU, LIU shall retain the pro rata proportion of the premium hereon.


Q. Am I required to report all circumstances that could give rise to a Claim?


A. You must give us written notice of any claim(s) or potential claim(s) made against you immediately but not later than sixty (60) days after expiration of the policy period or an extended reporting period, if applicable. In the event suit is brought against you, you must immediately forward to us every demand, notice, summons, complaint or other process received directly or by your representatives.


Q. How do I determine if something is qualified as a Claim?


A. “Claim” means receipt of a civil action, suit, proceeding or demand naming the Insured seeking Damages and / or Professional Services arising out of a Wrongful Act by the Named Insured Member or any Entity for whom the Insured is legally liable. A Claim will be deemed first made on the earliest date any Insured receives the civil action, suit, proceeding or demand.


Q. Does this policy offer an extended reporting period?


A. Yes; an optional one year for an additional premium of 100% of the total annual premium; or optional two years for an additional 150% of the total annual premium; or optional three years for an additional 200% of the total annual premium immediately following the effective date of such cancellation or refusal to renew, but only with respect to any Wrongful Act committed before the date of such cancellation or non-renewal.