TRAINING: Report Legal/Compliance Issues/"Fires"
Most E&O policies are “claims-made” policies, meaning that any claims made against you must be reported to the insurance carrier prior to the expiration of the policy. If a claim is not made before this time, the insurance carrier can deny the claim, which would require you to spend thousands of dollars to retain an attorney and resolve the case. For this reason, it is important that United Real Estate Los Angeles is informed of any and all claims immediately once you become aware of the potential issue. A “claim” could be any of the following:
- A phone call from the other agent informing you that an issue was not disclosed;
- An email from the buyer, seller or their agent requesting that you or your client pay money due to some error or omission;
- A call/email from a client stating that you misrepresented an issue or induced them into an agreement;
- A letter from an attorney, whether addressed to you or your client, requesting money; or
- You becoming aware that a party in a transaction is not satisfied and is seeking monetary relief as a result.
If you have any doubt about whether an incident or issue should be reported, it is important to error on the side of caution and report it to United Real Estate Los Angeles. Our Legal/Compliance team will then discuss the issue with our insurance representative to determine if the matter should be reported. However, if you fail to timely report a matter to United Real Estate Los Angeles, you could be responsible for any and all fees (i.e., attorney fees, court costs, settlements) to defend yourself and United Real Estate Los Angeles in any lawsuit.
Fill out the form below so we can gather all the info necessary for Legal/Compliance review.