We are a relatively new real estate brokerage company based in Texas and so one of the many things on my to-do list is getting E&O insurance coverage for both the company and the agents. I am trying to keep costs down (as I'm sure everyone is) as much as possible for the agents. Ideally I would like to be able to cover the costs of this insurance as a company but that can get expensive. As it stands right now, my agents don't have any fees like desk fees, sign fees or franchise fees and I'd like to be able to minimize as much out of pocket expense for them as possible.
So, if you are a broker and you cover this expense for your agents I would love to hear from you. Things like what insurance companies you would recommend and what your average costs are would be really helpful.
Or if you are a broker and you don't cover this expense then do you charge your agents monthly or per transaction rates?
If you are an agent, I would really appreciate hearing your thoughts on paying for this insurance and whether being charged through your broker, monthly or transaction rates work better verses getting your own policy and providing proof of coverage to your broker instead.
Although real estate brokerage companies evolve all the time and things that work now may not work later, I would still like to be able to estabish some quidelines and requirement for the agents and also find the best possible way to get coverage without having to pay a lot of money up front.