West Virginia Real Estate Errors & Omissions (E&O)
Real Estate E&O Requirements in West Virginia
Whether you are the principal broker of a residential real estate agency in Charleston, manage a property management company outside of Huntington, or focus on commercial real estate in Morgantown or Parkersburg, a quality errors & omissions (E&O) insurance policy will give you and your agents peace of mind in the current real estate market.
Like in the surrounding states of Maryland, Virginia, Ohio, and Pennsylvania, the West Virginia Real Estate Commission (WVREC), does not currently require that real estate agents or brokers purchase real estate errors & omissions coverage. Most real estate franchises in WV, however, do require proof of coverage. For almost all WV real estate agencies, E&O is a critical part of their risk management program.
Real estate professional liability (E&O) coverage is a complicated insurance product that most WV insurance agents simply do not understand. Many E&O companies exclude common lawsuits against real estate agents. We will break down & explain the variety in West Virginia errors and omissions policies below.
How are West Virginia E&O Policies Different?
Many real estate professional liability insurance policies in West Virginia exclude claims related to bodily injury and property damage. This can be a significant issue for real estate firms, as most general liability policies also exclude these claims if you are sued for an incident arising out of your professional services as a real estate agent.
Examples include a slip and fall because of an agent’s negligence during a showing, or mold remediation costs after an alleged failure to disclose. A quality E&O policy will provide full limits of coverage for contingent bodily injury & property damage claims.
The sale of agent-owned commercial, raw land, investment property, flips, the management of owned property, and purchase of property by an agent is commonly excluded in E&O policies. Agents are not surprisingly more likely to be sued for properties they sold when they had ownership interest in the property.
E&O policies often exclude coverage for the sale of property developed or constructed by a related entity or an agent if sold through your brokerage. Our firm will explain who you can get coverage for broker or agent-owned property.
Other common E&O issues include gaps for property management activities, pollution claims, fair housing claims, and copyright/trademark violations.
Several common WV E & O insurance policies will “use up” your limits of liability to pay defense costs. Strong errors & omissions policies will provide a separate limit of liability for defense costs.
Get E&O Options from FirmSecured
Our team at FirmSecured will help you review your current coverage to uncover any potential gaps or issues, and help you find alternative & quality E&O options. Our goal at FirmSecured it to make the process both simple & informative. We won’t simply email a cheap E&O quote. We will take the time to review your options and help you make the right decision for your real estate brokerage.
Ready to Get Started on West Virginia E&O Options?
To have our team reach out about E&O options, simply complete the form below.
If you would rather schedule a discovery call on Google Meet with our team, you can book time directly on our calendar.
FirmSecured is powered by Veritas Risk Management, an independent insurance agency in Northeast Tennessee.
Cyber Insurance For West Virginia
E&O policies exclude most wire fraud claims. Want coverage?
Real estate agencies are facing a new threat in funds transfer liability, also known as third party wire fraud. If an agent clicks on a spoofed email, hackers can view all of their emailed information about their transactions and closings. Cyber criminals can then send convincing emails with wiring instructions, posing as an agent, to your clients. Once a homebuyer wires funds to a fraudulent account, there is often no recourse. This is one of the purposes of cyber liability insurance for real estate firms. Learn more about real estate cyber insurance here.
Real Estate General Liability Coverage
Don't want different insurance agents for each liability policy?
Commercial general liability coverage (CGL) is a critical insurance coverage for most businesses, including real estate firms. If you trust our team with cyber liability and professional liability coverage, just ask our team about our general liability options for real estate firms. We will provide you with several options for your agency, as well as help you understand any issues or gaps in your current policy.
