Most real estate agents are willing to go the extra mile for their absent clients, which sometimes means coordinating non-traditional projects which could be as simple as lawn care to more complicated items like replacing the water heater or furnace. Real estate agents that routinely work with bank-owned properties are usually equipped to handle these, but an agent who does so occasionally needs to be careful about what the scope of his or her duties really entail. Simply offering to "check on" the property occasionally leaves a lot of room for an exposure. How often and what will be checked should be worked out ahead of time.

A once-a-week drive by isn't likely to reveal a failed sump pump, faulty furnace, or spot evidence of a break-in all of which could only get worse the longer undiscovered. Water damage only increases the longer it goes on including mold & mildew. A faulty furnace can allow the temperature to drop below freezing increasing the risk of ruptured pipes, or leak natural gas which can cause catastrophic damage if it explodes. Given enough time thieves can strip a house of not only left behind possessions but also plumbing and wiring which may or may not be covered depending on whether it is considered vandalism (which is covered) or theft (which is not). Additionally the thieves may not take the time to shut off the water, flooding the house or care if they steal or just damage gas lines resulting in an explosion.

Travelers^® offers an article that you may share with your real estate agent clients to make them aware of the risks and how to avoid unnecessary exposure. To help you persuade prospects, download this flyer with eye-opening claims scenarios. Travelers Real Estate Agents / Property Manager E&O provides professional liability protection for claims or suits resulting from real estate agent or broker professional services.

Policy Features:

• Bodily Injury and Property Damage resulting from a covered professional service(s).
• Disciplinary proceeding defense expenses reimbursement up to $25,000.
• Increased liability limits available for those who qualify.
• Defense expenses related to covered claims in additional to the limits of coverage.
• Deductible applies to defense expenses, unless endorsed or not allowed by state.
• Option to provide prior acts coverage without a retroactive date limitation, for those who qualify.
• Many extended reporting period options, including an unlimited time period endorsement option.
• No exclusion for fair-housing discrimination committed in real estate professional services as a real estate agent or broker.
• No exclusion for losses resulting from a real estate agent or broker failing to advise a buyer or seller that pollution, fungi and bacteria exists on a property.
• No sub-limits for certain types of claims.
• Coverage for employees and independent contractors of the insured automatically included as protected persons for claims resulting from professional services they perform for the named insured.

Coverage is available in all states with the exception of CA, HI, and LA and is written on admitted paper. Log in to Big "I" Markets at www.bigimarkets.com and click on Real Estate Agents and Property Manager E&O to learn more or to request a quote.  
October 21, 2015
1:00 to 4:00 p.m. Eastern Time
$79 - Click here to register

Participants will review the basic underpinnings of contractual liability - the difference between breach of contract and liability assumed by contract as well as assuming the liability of others in a contract. Emphasis will be on hold harmless and indemnity agreements often used in the construction industry, including the meaning of hold harmless and indemnity agreements, the parties to the agreement and the notion of performance of an obligation to hold harmless and indemnify another. With illustrations of each type of indemnity clause, the participants will explore the differences among the broad form, intermediate form and limited form indemnity clauses, including how such clauses affect third parties not a party to the indemnity. By way of certain examples, a review of limitations on indemnity agreements, including select state statute and case law, as well as a review of some statutes' "insurance exceptions" and how they may apply.

The course will examine in detail the contractual liability exclusion in the CGL policy, including whether the exclusion applies only to indemnity agreements or to other types of liability assumed by contract. A detailed review of the exceptions to the contractual liability exclusion, with emphasis on "insured contracts" will be undertaken. Also discussed will be the CGL policy's provision for defense of an indemnitee and what types of indemnity agreements are not "insured contracts." The course will conclude with a review of the fundamental differences between indemnification and additional insured, including the rights of each, and the issues created with tying additional insured coverage to an indemnity provision. VU webinar questions can be sent to bestpractices@iiaba.net.  

 

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