Right along with the housing rebound has been the return of real estate and mortgage agents – and for insurers, it means more people in need of E&O cover.
But more than that, the errors and omissions coverages have evolved, says Kristye DeStout, the underwriter team leader with Norman-Spencer Agency Inc.
“Public relations, crisis/event coverage, those types of things,” says DeStout. “Ten or 15 years ago, that was non-existent. I think you are beginning to see a lot of cyber coverage becoming popular these days.”
In the case of Norman-Spencer’s E&O program offer, coverages now include environmental hazards, discrimination defense, subpoena assistance – and some items that never existed 10 or 15 years ago, but are very popular now.
“Public relations, crisis/event coverage, those types of things,” says DeStout. “Ten or 15 years ago, that was non-existent. I think you are beginning to see a lot of cyber coverage becoming popular these days.”
Norman-Spencer focuses on the real estate sector of E&O coverage, and there are specific niche policies out there specific to mortgage brokers or real estate agents, says DeStout, mostly due to the costs involved in the very different coverages.
According to DeStout, E&O cover can prove its worth for real estate agents who are handling rehabilitated or abandoned properties that are a legacy of the 2008 recession that banks are leery to touch.
“Especially if the real estate firms are interested in assisting the banks in listing those properties,” says DeStout. “The bank’s asset management companies would not give you any benefit of letting you do any listings for them unless you had E&O coverage.”
