Real estate developer insurance application

Your resource for all things Real Estate. Including Legal, Agent & Broker, and Property Rights Issues.

Membership

Whether you’re a new agent or an experienced broker you have access to a wide array of resources designed to help you succeed in today's market.

Research & Statistics

Including home buying and selling, commercial, international, NAR member information, and technology. Use the data to improve your business through knowledge of the latest trends and statistics.

NAR is widely considered one of the most effective advocacy organizations in the country.

NAR and its affiliated Institutes, Societies, and Councils offer a wide selection of real estate training options.

News & Events

Stay current on industry issues with daily news from NAR. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR.

America's largest trade association, representing 1.5 million+ members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries.

Real Estate Topics Resources and updates on NAR’s settlement agreement related to broker commissions. Commercial research and other tools for practitioners to succeed in commercial real estate. Membership Bringing you savings and unique offers on products and services just for REALTORS®. Complete listing of state and local associations, MLSs, members, and more. As a member, you are the voice for NAR – it is your association and it exists to help you succeed. Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms. Review your membership preferences and Code of Ethics training status. Research & Statistics Get the latest top line research, news, and popular reports. National, regional, and metro-market level housing statistics where data is available. Research on a wide range of topics of interest to real estate practitioners. Access recent presentations from NAR economists and researchers. Affordability, economic, and buyer & seller profile data for areas in which you live and work. Analysis of commercial market sectors and commercial-focused issues and trends. From its building located steps away from the U.S. Capitol, NAR advocates for you. Promoting the election of pro-REALTOR® candidates across the United States. Resources to foster and harness the grassroots strength of the REALTOR® Party. A powerful alliance working to protect and promote homeownership and property investment.

Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice.

Continuing education and specialty knowledge can help boost your salary and client base. Fulfill your COE training requirement with free courses for new and existing members. Meet the continuing education (CE) requirement in state(s) where you hold a license.

Acknowledging experience and expertise in various real estate specialties, awarded by NAR and its affiliates.

Offering research services and thousands of print and digital resources. Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. Academic opportunities for certificates, associates, bachelor’s, and master’s degrees. News & Events Official news releases from NAR. Commentary from NAR experts on technology, staging, placemaking, and real estate trends. Stay informed on the most important real estate business news and business specialty updates. National, state & local leadership, staff directories, leadership opportunities, and more. Founded as the National Association of Real Estate Exchanges in 1908. NAR’s operating values, long-term goals, and DEI strategic plan. Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations. Member recognition and special funding, including the REALTORS® Relief Foundation. Real Estate Topics

real-estate-topics-mega-menu

Your resource for all things Real Estate. Including Legal, Agent & Broker, and Property Rights Issues.

Resources and updates on NAR’s settlement agreement related to broker commissions.

Commercial Real Estate

Commercial research and other tools for practitioners to succeed in commercial real estate. Providing Membership Value

membership-mega-menu

Whether you’re a new agent or an experienced broker you have access to a wide array of resources designed to help you succeed in today's market.

Bringing you savings and unique offers on products and services just for REALTORS®. Complete listing of state and local associations, MLSs, members, and more. As a member, you are the voice for NAR – it is your association and it exists to help you succeed. Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms. Review your membership preferences and Code of Ethics training status. Market Behavior

research-mega-menu

Including home buying and selling, commercial, international, NAR member information, and technology. Use the data to improve your business through knowledge of the latest trends and statistics.

Get the latest top line research, news, and popular reports. National, regional, and metro-market level housing statistics where data is available. Research on a wide range of topics of interest to real estate practitioners. Access recent presentations from NAR economists and researchers. Affordability, economic, and buyer & seller profile data for areas in which you live and work. Analysis of commercial market sectors and commercial-focused issues and trends. Representing Your Industry

advocacy-mega-menu

NAR is widely considered one of the most effective advocacy organizations in the country. From its building located steps away from the U.S. Capitol, NAR advocates for you. Promoting the election of pro-REALTOR® candidates across the United States. Resources to foster and harness the grassroots strength of the REALTOR® Party. A powerful alliance working to protect and promote homeownership and property investment.

Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice.

Advancing Your Career

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NAR and its affiliated Institutes, Societies, and Councils offer a wide selection of real estate training options.

Continuing education and specialty knowledge can help boost your salary and client base. Fulfill your COE training requirement with free courses for new and existing members. Meet the continuing education (CE) requirement in state(s) where you hold a license.

Acknowledging experience and expertise in various real estate specialties, awarded by NAR and its affiliates.

Offering research services and thousands of print and digital resources. Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. Academic opportunities for certificates, associates, bachelor’s, and master’s degrees. News & Events

news and events

Stay current on industry issues with daily news from NAR. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR.

Official news releases from NAR. Commentary from NAR experts on technology, staging, placemaking, and real estate trends. Stay informed on the most important real estate business news and business specialty updates. Who We Are

about-nar-mega-menu

America's largest trade association, representing 1.5 million+ members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries.

National, state & local leadership, staff directories, leadership opportunities, and more. Founded as the National Association of Real Estate Exchanges in 1908. NAR’s operating values, long-term goals, and DEI strategic plan. Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations. Member recognition and special funding, including the REALTORS® Relief Foundation. Browse by Section

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Umbrella

Errors & Omissions (E&O) Insurance

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Quick Takeaways

Errors and omissions insurance (E&O) is a type of professional liability insurance that protects companies and their workers or individuals against claims made by clients for inadequate work or negligent actions. Errors and omissions insurance often covers both court costs and any settlements up to the amount specified by the insurance contract.

Victor Insurance Managers LLC and the National Association of REALTORS® have partnered under NAR REALTOR Benefits® to provide a first-class E&O insurance program to REALTOR® members. Victor is one of the largest and most experienced underwriting managers of specialty insurance programs in the world, serving more than 46,000 policyholders in various specialty industries through independent insurance agents and brokers.

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References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

NAR REALTOR Be​nefits®

Victor Insurance Managers LLC and the National Association of REALTORS® have partnered under NAR REALTOR Benefits® to provide a first-class E&O insurance program to REALTOR® members. Victor is one of the largest and most experienced underwriting managers of specialty insurance programs in the world, serving more than 46,000 policyholders in various specialty industries through independent insurance agents and brokers.

To learn more about Victor’s Real Estate Errors & Omissions Insurance Program, take a look at their program brochure pdf or call 888-429-6638. Be sure to mention that you are a member of the National Association of REALTORS®.

Some state associations also have carriers they recommend (check with your state association for this information). Please see this list for additional Errors & Omission Insurance Providers.

Use of E&O Insur​ance in Real Estate Firms

Benefits Received by Independent Contractors

E&O Insurance Basics

Depending on the claim, you could face disciplinary hearings from a regulatory or licensing board. As you defend yourself against an errors and omissions lawsuit, you could also incur a loss of earnings for your time spent in court and on depositions. Errors and omissions insurance helps pay for all these costs.

If you live in a state that requires you to have your own E&O insurance (which is covered in the next section), then you must have your own in order to maintain your real estate license.

These policies do not cover criminal prosecution and certain liabilities that may arise in civil court not listed in the policy. This includes illegal acts, intentional deeds of wrongdoing, or criminal activity. E&O insurance often does not cover bodily injury inflicted by your business as that is typically covered by general liability insurance.

It’s crucial that your E&O policy has a limit of liability large enough to cover the total cost of a property that your client has purchased. If you typically sell $500,000 homes and you’re now selling a $1,000,000 home, you’ll be underinsured if your coverage limit isn’t equal or above the value of the property sold.

Choosing the Right Coverage

Look over this part carefully. Exclusions aren’t necessarily bad – it’s part of what keeps insurance affordable, though you may need to line up other insurance coverage to plug any risks that fall under your E&O carrier’s exclusions.

An errors and omissions insurance policy will generally cover the business owner along with all salaried and hourly employees of the company. Most policies also extend to provide coverage for any subcontractors you have working on behalf of your business.

Insurance companies are typically ranked A to E, with A as the top rating. The higher the rating, the more financially stable the carrier. That's why you usually want to buy errors and omissions insurance from a carrier rated A or better.

Risk Management for Brokers

The specific concerns of midsize companies will vary depending on the industry. But a common, and growing, concern that is threaded throughout nearly all industries is the rise in exceptionally high jury awards.

Avoid using AI to draft contracts, modify standard forms, or provide legal advice to clients. Instead, seek appropriate advice from actual professionals.

Tips for Managing Risk & Managing Reputation Bundle (Digital Download), (National Association of REALTORS®) Item #135-101

This unique combination of eProduct's was specifically created for you to help manage risk. This combination bundle will help you succeed with social media and will also help you make the right E & O insurance decisions.

eBooks & Other Resources

The following eBooks and digital audiobooks are available to NAR members:

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.