Protecting Your Business with TREC Errors and Omissions Insurance

TREC errors and omissions insurance is a must-have for Texas real estate professionals, as it provides liability coverage for errors, omissions, and negligence in the course of their business. This type of insurance is specifically designed for agents and brokers in the state of Texas.

The Texas Real Estate Commission (TREC) requires a minimum of $300,000 in liability coverage for TREC-licensed agents and brokers. This is a significant amount, and it's essential to have adequate coverage to protect your business.

In the event of a claim, having adequate insurance coverage can help protect your business from financial ruin.

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In Texas, home inspectors are required to have a minimum of $100,000 in Errors and Omissions insurance to obtain or renew a license with TREC.

This specific requirement is crucial for home inspectors to meet in order to practice their profession.

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Exclusions are a necessary part of keeping insurance affordable, but you may need to line up other insurance coverage to plug any risks that fall under your E&O carrier's exclusions.

Errors and omissions insurance policies typically cover the business owner, salaried employees, hourly employees, and subcontractors working on behalf of the business.

Insurance companies are ranked from A to E, with A being the top rating, indicating a financially stable carrier. You usually want to buy errors and omissions insurance from a carrier rated A or better.

EliteMGA offers specialized E&O insurance plans tailored to your home inspection business's risk management needs, whether you're a sole proprietor or a multi-inspector firm.

Their 20+ years of combined experience will help you get the professional liability insurance & E&O insurance you deserve in the quickest time possible, with no hidden fees, taxes, or financing costs.

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Investing in insurance is crucial for protecting your assets and business. Having your own Texas E&O policy will put your protection first, even when your firm's policy can't, which means you'll be without coverage if its total claims exhaust the available coverage.

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Many insurance companies use the same E&O policy across industries, but this doesn't protect you from risks specific to real estate. This is why you need a customized policy for your actual real estate activities.

Having a portable individual E&O policy ensures continuous coverage, even if you leave your company or it loses coverage. This is especially important because you'll likely have a gap in coverage if you're not protected by your firm's policy.

You can reduce your out-of-pocket claims costs by using a CRES Qualified Home Warranty to protect the buyers and eliminate your E&O retention. This can also get you up to an additional $50,000 in Seller's Protection Plan coverage.

Here are some benefits of having your own individual E&O policy:

In Texas, home inspectors are required to have a minimum of $100,000 in Errors and Omissions insurance to obtain or renew a license with TREC.

This requirement is in place to protect both the inspector and the client from potential liabilities. A lawsuit caused by an unfounded error or omission allegation can be a time-consuming nuisance, and E&O insurance will help mitigate this risk.

Home inspectors can choose to work with EliteMGA, a company that provides specialized E&O insurance policies tailored to the needs of home inspection businesses. Their experienced staff will generate a policy plan that fits your business's risk management needs.

Here is a summary of the insurance requirements for home inspectors in Texas:

It's worth noting that while E&O insurance is not required for brokers, it's still a good idea to carry this type of insurance to protect your business and reputation.

In Texas, E&O insurance is required for home inspectors to maintain an active license, with a minimum coverage of $100,000.

The Texas Real Estate Commission (TREC) requires this level of coverage to ensure home inspectors are protected against potential liabilities.

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EliteMGA knows the specific requirements and can provide a certificate on the required form once coverage is bound.

Operating without E&O insurance is like driving without a seatbelt, you might be a great driver, but you can't predict the behavior of others.

Protecting your assets with the right insurance is the prudent thing to do, and E&O insurance will shield you and your business from costly lawsuits.

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EliteMGA has over 20 years of combined experience helping home inspection businesses like yours get the E&O insurance they need.

Their specialized staff will generate a policy plan tailored to your business's specific risks. This ensures you get the best possible protection for your business.

With EliteMGA, you won't find any hidden fees, taxes, or financing costs in their program. This transparency is a big plus when it comes to budgeting for your insurance needs.

EliteMGA offers E&O insurance coverage for a wide range of inspection services, including radon, lead paint, termite/WDI/WDO, and more. This means you can get all your insurance needs met in one place.

Their 20+ years of experience will help you get the professional liability insurance & E&O insurance you deserve in the quickest time possible.

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As a broker, you're likely no stranger to risk management. Midsize businesses, in particular, face full-size risks, and the rise in exceptionally high jury awards is a growing concern across industries.

The National Association of REALTORS recommends avoiding the use of AI to draft contracts, modify standard forms, or provide legal advice to clients. Instead, seek advice from actual professionals.

High jury awards are a significant risk for brokers, but there are ways to mitigate this risk. One way is to invest in Errors and Omissions (E&O) insurance, which can help protect your business in the event of a lawsuit.

Here are some key features to look for in an E&O policy:

In Texas, home inspectors are required to have a minimum of $100,000 in Errors and Omissions (E&O) insurance to obtain or renew a license with the Texas Real Estate Commission (TREC).

This insurance requirement is clearly stated by the TREC, which also requires a Certificate of Insurance form to be filed at the time of license issuance and renewal.

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To maintain their license, home inspectors must retain records of their professional liability insurance coverage for the preceding two-year license period.

A Certificate of Insurance form, signed by the insurance agent, must be filed with TREC at the time the license is issued and with each renewal of the license.

This form is a specific requirement by TREC, and EliteMGA can provide a certificate on this form once coverage is bound.

Home inspectors who carry E&O insurance will be protected from possible liabilities, their company's reputation, and long, extensive lawsuits.

Here is a summary of the required E&O insurance for Texas home inspectors:

Carrying E&O insurance is a prudent decision for home inspectors, as it can help protect their assets and reputation.

In Texas, home inspectors are required to have a minimum of $100,000 in Errors and Omissions insurance to obtain or renew a license with TREC.

To meet the TREC requirements, you'll need to file a Certificate of Insurance form with the commission at the time of license issuance and renewal. Additionally, you must retain records of your professional liability insurance coverage to document continuous coverage for the preceding two-year license period.

To get the right insurance, look for a provider that knows what TREC requires and can provide a certificate on the specific form TREC needs.

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In Texas, home inspectors are required to have a minimum of $100,000 in Errors and Omissions (E&O) insurance to obtain or renew their license with the Texas Real Estate Commission (TREC).

This insurance requirement is crucial to protect home inspectors and their businesses from potential liabilities, as well as their reputation and assets. A lawsuit caused by an unfounded error or omission allegation can be a time-consuming and costly nuisance.

To comply with TREC's requirements, home inspectors can obtain E&O insurance from a reputable provider, such as EliteMGA, which can provide a certificate on the specific form TREC requires.

If you're a home inspector in Texas, it's essential to have E&O insurance to safeguard your business and avoid financial burdens. Don't set yourself up for a lawsuit by driving without a seatbelt – get E&O protection today.

Here are the key E&O insurance requirements for home inspectors in Texas:

In Texas, real estate professionals can opt for an Individual E&O Policy with liability limits of $500,000 and a $2,500 retention for out-of-pocket claims expenses.

This policy also includes a Seller's E&O Protection Plan, which can help you secure more listings by offering an added layer of protection for your clients.

Open House and Showings coverage is another essential aspect of this policy, providing financial protection in case of injuries or property damage that may occur during open houses, showings, or other selling activities.

Lockbox coverage is also included, safeguarding against injuries and property damage related to your lockbox.

The policy covers Fair Housing/Discrimination claims, including defense costs and damages, to ensure you're protected in case of any disputes.

You can also add Firms and Franchisors as Additional Insureds, providing them with coverage in case of any claims or disputes.

If you're ever involved in a lawsuit, the policy offers coverage for Attorney's Fees up to $500,000, a separate limit that can help alleviate some of the financial burden.

Here are some additional "Broad Form" coverage details: