E&O Claim or Potential Claim Reporting Advisory

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?

  1. Actual lawsuits
  2. Demands received
  3. Threats received regarding a potential claim
  4. Disciplinary proceedings, commission complaints, or complaints brought to any other regulatory body
  5. 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.