Field Guide to Errors & Omissions Insurance
(Updated September 2006)
The ever-increasing complexities of real estate transactions and the rising use of litigation have prompted a need for errors and omissions (E&O) insurance programs to reduce the risk to sales associates and the real estate firms they represent against potential lawsuits. The following items address E&O and professional liability insurance, answering many of the questions REALTORS® may have about how E&O insurance works and how to choose a provider. (M. Martinez, Library Manager)
Use of E&O Insurance in Real Estate Firms
58% of real estate firms with independent contractor licensees and 29% of firms with salaried licensees offer E&O insurance coverage.
Source: The 2004 National Association of REALTORS® Profile of Real Estate Firms
NEW! 2006 NAR Profile of Real Estate Firms: An Industry Overview
Visit the REALTOR.org Store or call NAR's Information Central at 800-874-6500 to place your order. (Item #186-02-06)
Risk Reduction 
Don't get sued by Uncle Joe!, (REALTOR® Magazine, Aug. 2006).
Calculated risk, (REALTOR® Magazine, Aug. 2006).
Broker toolkit: risk management, (REALTOR® Magazine Online).
Risk management: erect barriers to legal liability, (REALTOR® Magazine, Dec. 2004).
Brokers have more legal liability than they may think, (Realty Times, Dec. 6, 2004).
E & O Insurance Basics
The ins and outs of errors and omissions insurance, (Insurance Journal, July 19, 2004).
What real estate licensees should know about errors & omissions insurance, (Today's Buyer's Rep, May 2004).
Real estate E&O insurance: understanding the basics, (Letter of the Law, 2003).
Errors & omissions insurance: your safety net, (Realty Times, June 23, 1999).
E&O insurance: good investment or wasted profits?, (Today's REALTOR®, Nov. 1996).
Choosing the Right E&O Coverage
E&O Insurance: Are You Covered? Too little coverage, too much, wrong carrier - it's a big deal., (California Real Estate, Apr. 2006).
Show insurers the right stuff, (REALTOR® Magazine, Jan. 2005).
Errors & omissions insurance: The experience of states with mandatory programs for real estate licensees, (Journal of Real Estate Practice and Education, Vol. 8, No. 1, 2005). Q
Errors & omissions insurance: A REALTOR'S® guide to choosing the right E&O insurance coverage, (Massachusetts Association of REALTORS®, 2002).
E&O Resources & Products
Geo. F. Brown & Sons - NAR endorses this E&O insurance carrier as part of the REALTOR® Benefits Program. Find out more about this program, provided by United National Group and administered by Geo. F. Brown & Sons, Inc., by calling 888-372-6262 or visiting www.gfbgroup.com.
Real estate brokerage essentials: managing legal and business issues, 3rd edition, NATIONAL ASSOCIATION OF REALTORS®. (Item #126-358)
eBooks & Other Resources
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Risk hotline for real estate: learn from actual agent experiences before they happen to you!, (Seattle, OR: Classic Day Publishing, 2005). HD 1375 R22
Real estate agent's field guide: essential insider advice for surviving in a competitive marketplace, (New York, NY: AMACOM, 2004). HD 1382 M365
The digital paper trail in real estate transactions, (Boulder, CO: Real Law Books, Inc., 2002). KF 2024 F86d
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to Insurance Issues for Associations
Field Guide to Fair Housing
Field Guide to Antitrust
Field Guide to Agency Disclosure
Field Guide to Real Estate Office Policy Manuals
>> Have an idea for a new Field Guide? Click here to send us your suggestions!
The inclusion of links on this Field Guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
E-mail 
