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 Risk management
Insuring Against Risks



  

Three Lines of Defense Against Risk

Keeping Risks Under Control

Controlling Transaction Risks

Agency Disclosure

Avoiding Antitrust Risks

Minimizing Liability from Contracts

Fair Housing Risks

Controlling Personnel Risks

Communications Policies to Minimize Risks

Insuring Against Risks

More Resources: Controlling Business Risks

Code of Ethics: Controlling Business Risks 		  Advanced Tip:
Handling Claims Against You

Even with the greatest care, you may have a suit filed against you and need to file insurance claim at some point. Don’t panic; just follow these steps.
  • Report claims early. Early reporting not only locks in coverage with the current E&O policy, but it also allows the insurance representative enough time to respond on the broker's or sales associate's behalf. —Mary Mullan,“E&O Insurance Assurance,” Illinois REALTOR®, Illinois Association of REALTORS®, May 1998
  • Exercise some restraint in fees you incur consulting your own attorney on a claim. If legal counsel is needed, the insurance company will assign representation. The insurer has no obligation to reimburse any unapproved counsel, regardless of the outcome. —Roger Nelson,“Errors and Omissions Claims,” Minnesota REALTOR®, Minnesota Association of REALTORS®, Fall 1992
  • Write a detailed chronological narrative of the pertinent events when you become aware of a claim or a possible claim. Claims can take years to settle, and memories fade over time. Documenting minor details may make a difference in the outcome of a case.
  • Cooperate fully with the insurance company's claim representative. Provide copies of the files and any other information requested by the insurance company.
  • Participate in depositions and other meetings with local counsel that the insurance company asks you to attend.
  • Document all-important conversations and decisions involving the case. Without a paper trail, it's your word against the claimant's.

Other Ways to Shift Risk >		    
 
 
 
 
 
 






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