Pennsylvania Real Estate Errors & Omissions (E&O)
Real Estate E&O Requirements in Pennsylvania
Whether you own a residential real estate agency outside of Harrisburg, manage a commercial real estate firm in Philadelphia or Pittsburg, or focus on property management in Allentown, a solid E&O policy will give you peace of mind in the current PA real estate market.
Although Pennsylvania does not require that real estate agents carry professional liability (E&O) coverage, most PA franchises do, and most independent firms want to be protected as well. Failure to disclose & misrepresentation are among the top E&O claims for real estate agents, and even if an agent does everything according the letter of the law, that does not mean someone can’t sue the real estate agent.
There are many differences between real estate errors & omissions policies in Pennsylvania. Real estate E&O is a specialized insurance product that many PA insurance agents, let alone real estate agents, do not fully understand.
Let’s break down some of those differences below.
How are PA Real Estate E&O Policies Different?
Most PA real estate professional liability or E&O policies contain broad exclusions. If brokers have a claim that falls under the exclusion, they end up paying out of pocket.
One common example our firm sees regularly is an E&O exclusion for contingent bodily injury and property damage. Bodily injury and property damage claims arising from your professional services as a real estate agent are excluded under almost all general liability policies. If a client falls down the stairs allegedly due to the negligence of a real estate agent, many E&O insurance companies would deny coverage. Mold remediation costs or medical costs from sickness associated with mold would also fall under this category. The strongest of E&O policies will include full limits of coverage for contingent bodily injury & property damage claims.
Pennsylvania real estate E&O policies also often limit coverage for property management activities, escrow issues, fair housing coverage or environmental claims. Some policies include legal costs and claim defense costs within your main limit of liability, instead of providing a separate limit for defense costs.
Each word and paragraph of your real estate errors & omissions policy is important, and not all policies are the same.
Get E&O Options from FirmSecured
At FirmSecured, we don’t just email cheap E&O quotes. Our goal is to help you understand your current E&O coverage, any potential gaps & issues, and easily find alternative E&O options.
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FirmSecured is powered by Veritas Risk Management, an independent insurance agency in Northeast Tennessee. Our team is licensed in over 30 states, including PA.
Cyber Insurance For Pennsylvania
Cyber risk is an increasing concern for real estate brokers
Imagine if a hacker uses your email to send fraudulent wiring instructions from a “title company” to your client. This form of funds transfer liability is increasingly common for real estate agents. Data breach response costs, and ransomware / cyber extortion are also claims on the rise for real estate firms. Most real estate E&O policies exclude these claims. That is why a standalone cyber insurance policy is important for real estate firms. Learn more about Pennsylvania real estate cyber insurance coverage options.
Real Estate General Liability Coverage
Don't want different insurance agents for each policy?
Once brokers find a trusted insurance agent for E&O and cyber coverage, most brokers prefer to also place their general liability with the same agent. General liability insurance coverage is critical for almost all businesses, including real estate firms. Let our team know you are also interested in reviewing General Liability options when we review your E&O or cyber.
