What you SHOULD be reporting to your Real Estate E&O Policy ?
Your E&O policy has a reporting requirement for both claims and potential claims. Please refer to your actual policy for complete terms and conditions regarding both the definition of a claim and what the reporting requirements are for claims and potential claims. The #1 reason for claim denials in real estate E&O is prior knowledge. i.e. an Insured had knowledge of a claim or potential claim and did not report it to the carrier within the time parameters specified in the policy.
So what should you report?
- Actual lawsuits
- Demands received
- Threats received regarding a potential claim
- Disciplinary proceedings, commission complaints, or complaints brought to any other regulatory body
- Knowledge of something that may reasonably be expected to give rise to a claim
It is much better to err on the side of caution than to have a claim denied. If you ever have a question as to whether something should be reported, please reach out to Paul Bondy at PBI Group 443.502.5645 to discuss it.
I encourage you to discuss claim & potential claim reporting requirements with all of your agents/brokers so that everyone is on the same page.