What questions should i ask when applying for errors and ommissions insurance for real estate and finance comp

Question

What questions should i ask when applying for errors and ommissions insurance for real estate and finance comp

Answer 1

I would ask -

What is the cost of the insurance at various limits of liability? In other words, what is the cost at $300,000, $500,000 and $1,000,000?

What is the self insured retention (i.e. deductible)? How much can I save with a higher retention? Is going from $2,500 to $5,000 cost effective?

What about the company? Financially sound? How much experience does this company have with this line of business? Or how long has this company been writing this type of insurance?

Answer 2

All the questions will be coming from the agent and the insurance company.

You do realize you're looking at two different policies, though, right?  One for the real estate e&o, one for the finance co e&o.  And in order to get that license to do business, assuming it's like a mortgage broker, you'll ALSO need to have mortgage impairment coverage set up, and general liability.  

From your point of view, you want to know which companies offered a quote, what the coverages were, and what their financial strength rating is at www.ambest.com