Broad Form Endorsement provides more comprehensive coverage compared to basic real estate errors and omissions policies. It extends protections to a wider range of risks and potential liabilities that real estate professionals may face. However, the specific terms and inclusions can vary greatly between insurers. For example, at CRES, Broad Form Endorsement is included in most CRES individual E&O policies. It is also an option for firm policies
It’s important when comparing policies to carefully review the fine print to make sure you get the level of coverage you need for your real estate business.
CRES’ Broad Form Endorsement covers the following:
Subpoena Coverage — $30,000 to cover your expenses per subpoena
This covers things such as legal costs associated with responding to subpoenas and preparing to appear if asked, document production costs, or travel related to the subpoena so you can provide your testimony. Having comprehensive subpoena coverage means you can simply focus on fulfilling your obligations for the subpoena instead of worrying about the impact on your business finances.
Disciplinary Proceedings Coverage —$20,000 per disciplinary proceeding (up to $50,000 per policy period)
This covers reasonable attorneys’ fees and other necessary costs, expenses, or fees relating to disciplinary or regulatory proceedings in front of a real estate licensing board. For example, if you find yourself facing accusations of misconduct or violations of real estate laws or professional standards. Even if the allegations are false, it can be very costly to mount a proper legal defense for these proceedings. Disciplinary Proceedings coverage will give you peace of mind that you’ll be covered without draining your business resources.
Loss of Earnings Coverage — $750/day or $10,000 per claim (up to $50,000 per policy period)
When it comes to legal disputes, the costs can extend well beyond the attorney fees and potential damages. Real estate professionals also face significant loss of earnings if you’re required to be away from work or attending court proceedings. Loss of earnings coverage can help to offset this burden. So, if you’re required to attend court for a trial, hearing, mediation, or arbitration involving a claim against you, you can be reimbursed for income lost, up to the specified limits in your policy.
Public Relations Coverage — $25,000 per public relations event (up to $50,000 per policy period)
Public relations coverage means you can be reimbursed for reasonable fees for public relations (PR) advisory services as a result of a specific event that could cause potential damage to your reputation. (Covered events include life-threatening illness or death, or a violent act or workplace accident resulting in negative media attention.) A PR professional can help you manage media inquiries and craft communications, press releases, talking points, and other messaging to help you be proactive in the situation. This can help you to effectively manage any reputational threats and minimize the damage to your brand.
Non-Profit Directors/Officers Coverage — $15,000 per claim (up to $30,000 per policy period).
It’s not uncommon for real estate professionals to also take up leadership roles in their community with non-profit organizations. Whether serving as a director or officer, this involvement can expose you to additional risks that will not be covered under your regular E&O policy.
When Broad Form Endorsement is included in a CRES E&O policy, the broker/owner of the named insured is covered for damages and defense costs. The coverage is only for the activities of the broker/owner as a director or officer of a non-profit organization.
Data Breach Notification Coverage — $50,000 in Cyber Liability coverage for notification costs due to a Data/Security breach
If you happen to be unfortunate enough to suffer a data breach, you’ll find the notification process can be both complex and expensive. But, with data breach notification coverage as part of your CRES Broad Form Endorsement, you would be covered for up to $50,000 for notification costs.
Protect Your Real Estate Business with Broad Form Endorsement
When choosing any insurance policy for your real estate business, it’s important to examine the inclusions very carefully. With the added benefit of Broad Form Endorsement, you’ll have considerably more coverage in critical risk areas.
As part of one of the largest insurance brokers in the world, CRES has access to more insurance options to protect real estate professionals than just about anyone else. Let us show you the best coverage available at the best value.
With CRES Real Estate E&O + ClaimPrevent®, you’ll also have access to qualified attorneys pre-claim to answer questions or help you resolve issues.
To help protect your real estate brokerage with a company policy, we can tailor an insurance package specifically to suit your business. Contact the CRES team at 800-880-2747 for a confidential discussion today.
