View this article online: https://www.insurancejournal.com/news/national/2005/08/04/58013.htm
St. Paul Travelers has introduced a new policy for real estate agents and brokers that provides broader protection from possible claims or litigation against errors and omissions they may make while performing their jobs.
St. Paul Travelers’ 1st Choice for Real Estate Agents and Brokers Professional Liability Protection covers real estate agents or brokers, property managers and notary publics. In addition, the policyholder’s employees, independent contractors and employees of the independent contractors are covered by the policy.
Some of the policy’s new features include the following:
* Legal defense expenses that extend beyond the policy limits;
* Disciplinary proceeding expenses or a legal expense reimbursement;
* Protection for Fair housing discrimination claims;
* Protection from failure by the agent or broker to disclose to the buyers or sellers the existence of pollution on the property.
“Real estate agents or brokers are at a distinct disadvantage when selling a house because they didn’t build, own or live in the structure so they rely on the seller to be upfront with them about problems,” said Ken Reko, product development director, Financial and Professional Services, St. Paul Travelers. “And, unfortunately, if something goes wrong after the house is sold, the buyer may find fault with the agent.”
Typically those items that don’t function on the property such as appliances or matters related to the characteristics of the property including zoning changes would be covered under the policy.
In addition, St. Paul Travelers offers 1st Choice for Real Estate Professionals Services Liability Protection policy. This is similar to the real estate agents and brokers policy in terms of coverage features but is offered to a wider range of real estate professionals. They include abstracters, auctioneers, real estate appraisers, title agents, title searchers, closing agents or escrow agents, title-opinion lawyers, witness closers and notary publics.
Both products are admitted and available in all states except California.
In 1956, St. Paul Travelers became the first insurance company to offer coverage to real estate agents and brokers. Today, the company continues to be a major underwriter of this coverage and has experienced underwriters and claim representatives dedicated to serving the needs of real estate agents and brokers.