Real Estate E&O

Nuts & Bolts: Victor O. Schinnerer announced added coverages for its CNA/Schinnerer Realty Choice program, which provides errors and omissions coverage for independently owned and operated firms in residential sales, commercial sales/leasing, property management, consulting appraisal, auctioneering and/or mortgage brokering. The added coverages include: (a.) Subpoena Assistance covering the insured if they receive a subpoena for documentation or testimony stemming from a covered professional service. CNA will retain an attorney to provide advice regarding the production of documents, to prepare the insured for sworn testimony and represent the insured at their deposition. (b.) Consent Credit that applies when the insured agrees to settle a claim when first approached. The insured’s deductible will be reduced by 25 percent with a maximum of $250 per claim and in the aggregate. New enhancements include: a) Increased supplementary coverage for defense expenses in a licensing proceeding. The policy now offers a $5,000 limit per proceeding and a $10,000 flat limit, regardless of the number of insureds, proceedings, etc. (b) Professional services now includes coverage for “short term escrow agents.” (c) Discrimination claims expenses are now covered in addition to limit of liability rather than within the limits of the policy. (d) Mediation can now last up to 180 days, rather than 60. And the insured can still reduce their deductible by 25 percent or $25,000. (e) The sale of owned residential property can now be covered as can the exposure for managing 100 percent owned properties.

Carrier: Continental Casualty, one of the CNA insurance companies.

States Available: Available in 32 states, including Texas and Arkansas.

Contact: Kathleen Metcalf of Victor O. Schinnerer, (301) 951-9763

Topics Professional Liability