Dear Danielle: Any Recommendations for E&O Insurance?

Dear Danielle:

I have my own Real Estate Transaction Coordination business and am searching for a good E&O insurance policy. Any recommendations you can give me? I have shopped around, but the prices are pretty high at $1000/yr. I cannot afford that quite yet, but do have an indemnification clause in my contracts–would that suffice at this point? I am getting more and more quotes this week and next. How do I determine the right coverage for my business? I want to make sure I’m protected. Any advice? Thanks!! –MP

Thanks for the question. $1,000 a year is pretty much the going cost for E&O insurance right now. But keep in mind, this kind of stuff isn’t an expense, it’s an investment in the protection of your business and you get to write those costs off at the end of the year come tax time.

Here’s a blog post I did awhile back on the topic of business insurance that you might find helpful: Dear Danielle: What Insurance Do I Need?

Regarding your question on the indemnification clause, only an attorney could advise you legally on that. When it comes to legal questions, you always want to refer to an attorney. Relying on the advice and opinions of those who are unqualified and unlicensed to legally answer your law-related questions is never a good idea in business.

As far as the right coverage amount for your business, that’s something that can only be determined between you and your insurance agent as every business owner’s situation is different and different insurers offer different plans and coverages. Sorry I can’t be more helpful on that; with this kind of subject, you really do need to go directly to the source to get your questions answered. But do read my blog post above as that will help give you some valuable guidance when it comes to your business insurance.

All my best!

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