Real Estate Brokers Beware — E&O Premiums Headed up, Insurance Brokers Say

With errors and omissions insurance poised to rise, now may be the time for residential real estate agency broker/owners to shop around — and scrutinize policy details.

(Boonton, NJ, March 15, 2010) — The cycle is nearly as predictable as the changing of the seasons: Every few years, the market for errors and omissions insurance shifts from a "hard" market that's tough on policyholders to a "soft" market marked by falling prices, then back again.

After enjoying a soft market for the past few years, brokers must prepare for a hard market that will put more strain on the bottom line, says Maria Treglia in an article in the March issue of industry newsletter Real Estate Broker's Insider.

Treglia, vice president of Program Brokerage Corp, a division of HUB International Northeast, a risk management and insurance brokerage firm, notes that, after a few years of plentiful coverage and falling prices, E&O premiums have begun rising.

With the E&O prices poised to rise, it's a good time to shop around. But don't jump at a low quote without scrutinizing the details of the policy.

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