How much do YOU pay for E & O Insurance?

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Real Estate Agent BRE# 00909239
http://actvra.in/42k5

How much do YOU pay for E & O Insurance.

Having worked for Coldwell Banker Real Estate for the past 27 years, I've paid an annual E & O insurance premium directly to the Brokerage every year. Coldwell Banker has four in-house attorneys and we receive annual training on how to avoid being sued.  

Coldwell Banker Sign


This year our E & O insurance is a total of $1665.00,
regardless of the number of transactions completed. When I first started with Coldwell Banker in 1986, I believe the total was $600.00.


Apparently, our Coldwell Banker Legal Assistance Program is NOT insurance...
"It provides defense, indemnity, legal education, transactional advice and other services".   

 

As I approach the deadline for payment, I'm just wondering...
 

How much do YOU pay for E & O Insurance?

Do YOU pay it all at once or per transaction?

How good is YOUR E & O Coverage?  


At Coldwell Banker, our attorneys average over 20 years of experience
and have successfully defended thousands of claims and lawsuits against Coldwell Banker and Sales Associates.  

Coldwell Banker will pay All of our defense costs, any settlements, arbitration awards or judgments.  Our only fee is the annual Legal Assistance Program cost of $1665.00.  Is that too much for what we get or is it about right?

How much do YOU pay for E & O Insurance?  

 

Your feedback and comments are greatly appreciated.

 

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Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Nancy, Thank you for sharing.  We're seeing quite a range on E & O Insurance fees for Real Estate Agents and apparently other businesses also have to pay for protection.  We only get a return on our insurance payments IF something goes wrong.  Hopefully, it never does.  Best wishes always. 

Aug 28, 2013 08:47 AM #19
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Good Morning Roger, YES, that is a lot of money since I always pay it in full.  If we make payments, there are additional charges which increases the amount paid.  It's always nice to see YOU.  Best wishes always. 

Aug 28, 2013 08:54 AM #20
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Wayne, I really appreciate your comment.  We should all realize that 90%, or whatever the actualy percentage is, of all people that pay for insurance will NEVER benefit from the coverage. However, the total of ALL premiums paid are the funds used for paying salaries for those that administer the program and for payouts on claims IF necessary.   Thank you and best wishes always.  

Aug 28, 2013 09:01 AM #21
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

AJ, Despite having a high deductible of $5000, it allows you to have a much lower premium.  As long as you're not involved in a long drawn out legal battle that you lose, the 50% of attorney fees will probably never happen.  Good luck and thank you for sharing.  Best wishes always. 

Aug 28, 2013 09:05 AM #22
Rainmaker
1,281,101
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Mine was $1010.00 this year - all paid up front.  It is more to make payments.  I am a very small Broker.  There are a lot of exclusions - Apartments, Commercial, Property Mangement.  I jokingly refer to it as the All Risk Exclusion Policy.  I can get expanded coverage if you want to buy an apartment from me.  I also pay $500.00 for a BOP (Business Owners Policy) which like a homeowners policy provides liability coverage and coverage for my Business Personal Property.  I use CRES out of San Diego and have been very happy with them.  I get good deals on Home Warranty and NHD Reports that can get me Deductible Waivers if I have a claim.

Aug 28, 2013 09:51 AM #23
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Michele, Thank you for your feedback.  Whatever we pay seems expensive until we find out that others are paying much more.  ;-)  Best wishes always. 

Aug 28, 2013 04:35 PM #24
Ambassador
1,109,159
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Richard: Our office charges the agents per transaction. It's not much, and most agents end up paying quite a bit less than $1600. I'm not sure of the limits, but it might be 2 million per transaction. Legal counsel and risk management advice/assistance for any non-claim activity is paid for by the brokerage.

Aug 28, 2013 06:36 PM #25
Rainmaker
1,358,694
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Interesting topic Richard, I didn't know that this sort of in-house insurance existed. It seems like a good premium amount for full protection from the suit.

Aug 28, 2013 08:22 PM #26
Rainmaker
443,050
Lana Robbins Realtor ® Licensed Real Estate Broker
Aloha Kai Real Estate - Clearwater, FL
Tampa Bay, Florida Real Estate

Hi Richard. Mine is reasonable. I do not mind paying it. Small price to pay for a little piece/peace of mind LOL

Aug 28, 2013 11:28 PM #27
Rainmaker
576,053
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000
Hawaii & California Real Estate Broker

Richard: Every timely topic for me. Am just reevaluating mine for both California and Hawaii.

Aug 28, 2013 11:28 PM #28
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Bryan, It's hard to beat No Cost for E & O Insurance for your agents.  As long as the program is working, I can't see how anyone could complain.  Do you have a blanket policy and absorb the total cost for coverage?  If so, do you recover the cost within the commission split?  Thank you for sharing and best wishes always.

Aug 29, 2013 12:35 AM #29
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Gene, It sounds like your fully loaded E & O Insurance Coverage is about the same as mine with Coldwell Banker.  If you do happen to sell an apartment complex, the additional fee would be well worth buying for the reward you would receive.  Thank you for sharing and best wishes always. 

Aug 29, 2013 12:38 AM #30
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Melissa, A pay per transaction appears to be a good approach.  Agents pay an amount based upon the number of transactions they actually participate in, and fairly charges different amounts for an agent that sells only one house and the agent that sells 25 homes.  Thank you and best wishes always. 

Aug 29, 2013 12:42 AM #31
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Tom, It does appear to be a really good plan, IF, we complete enough transactions to make it worth the amount paid.  It's also pretty much all inclusive and comprehensive for the agents.  I think of it like Rental Car Insurance.  You may have coverage through your regular auto insurance carrier, but the rental agency offers insurance, for a higher cost, that allows you to turn in the key and walk away, regardless of the condition of the car and with no out of pocket deductible.  Thank you and best wishes always. 

Aug 29, 2013 12:47 AM #32
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Lana, I like that little piece/peace of mind comment.  ;-)  All it takes is one nightmare of a deal to make us appreciate the fact that we pay for protection.  Best wishes always.

Aug 29, 2013 12:50 AM #33
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi Hella, I'm very glad that this post was timely for you.  There certainly are a lot variables when it comes to cost and coverage.  How lucky are you to get to do business in California AND Hawaii.  ;-)  Best wishes always. 

Aug 29, 2013 12:52 AM #34
Rainmaker
615,476
David Popoff
DMK Real Estate - Darien, CT
Realtor & Property Manager, Fairfield County, Ct.

Yikes, that sounds high, here in Ct the companies charge around $400 to $600 per agent.

Aug 29, 2013 05:44 AM #35
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California

Hi David, I definitely like the looks of your much lower fees.  Thank you for sharing and best wishes always. 

Aug 31, 2013 11:31 PM #36
Rainer
154,438
Raymond Denton
Dana Point Real Estate Agent - Dana Point, CA
Dana Point Realtor®

It's $100.00 per closing at RE/MAX Prestige (that's the Re/max near you, Richard, on the corner of Alicia and Marguerite Parkway's).  Altogether, after paying the franchise fee, you'll end up grossing 90% per escrow.  My Broker's name is Jason Abboud, if you'd like to meet him.

Jan 08, 2014 12:40 PM #37
Rainmaker
443,642
Richard Yates
Mission Viejo, CA
Broker and Realtor Orange County, California
Hi Raymond, Thank you for the information on E & O and commissions at ReMax. I've been contacted quite regularly by a couple of ReMax Managers and would seriously consider ReMax if I ever leave Coldwell Banker. Best wishes always.
Jan 09, 2014 08:16 AM #38
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Richard Yates

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