Insurance can be very expensive, especially E & O insurance. Mistakes and errors are made every day in the real estate industry and we provide the coverage for you for a small flat fee per transaction. You can write it off as a business expense. Many broker-associates join our network just for the errors and omissions insurance alone to reduce their liability and business expense. We provide errors and omissions insurance coverage for a fraction of the cost on a per transaction basis. According to real estate licensing rules and regulations, the broker is directly responsible for any real estate transaction his/her agent completes. To cover these expenses and liabilities, Premier Agent Network collects an E & O insurance fee/ Risk management fee for each closed transaction. This fee covers the cost for E & O insurance, litigations, judgments, claims, settlements, legal advice and attorney fees, and other risk management expenses. All Premier Agent Network salespersons and broker associates are covered under the E & O insurance policy for (1-4 residential dwelling).
For a standard (1-4 residential dwelling) transaction up to $1 Million, the E & O insurance and risk management fee is $135 per closed transaction. For every transaction over $1 Million in increments of every one hundred thousand price there is an additional $20 fee for all Plans. When representing the buyer and seller (dual transaction), the risk management fee is $270 plus $40 for every $100,000 price increment over $1,000,000. Our agents and broker associates are not responsible for paying the E & O insurance deductible. The designated broker responsible will pay for the deductible on the E & O insurance.
For income properties, commercial properties, industrial properties and properties that are unique have higher potential risk. This means the E & O insurance and risk management fee may be different to compensate for these types of transactions. For agents that sell his or her own property, including the agent’s spouse, agent’s company, agent’s trust, or if the agents name is on title, an additional E & O fee is required. The fee for selling an agent-owned property is $350 plus $35 for every $100,000 price increment over $1,000,000 for all Plans.
We provide you access to the policy and declarations via the agent portal in the documents library. In the event you need something modified to meet banks criteria for E&O coverage, please contact the Broker to accommodate the changes being requested.