WHAT DO YOU KNOW ABOUT E & O ???

I asked a question in the Q & A section in regards to Errors and Omissions insurance ( E & O) and it got a fair response from my peers. You know when we all get together and discuss anything, it has to reveal itself case in point. What I gather from all the comments is a couple of interesting things. Errors & Omissions insurance you say?

PAY-UP!

Many report that it is mandatory to have or no license or no practice. Fascinating. What made this a rule or a requirement I wonder? What it is saying is that agents who practice in the Real Estate (and other) arenas are apt to boo-boo and the public shouldn't be penalized for it? Thus insurance needed!

WHAT'S THAT?

Many also claim that they are glad they have it. It reminds me of the story of the guy who carried a loaded gun in his pocket but never had to use it. It gave him a sense of protection when no protection was needed. Sold a lot of guns however but wore out a lot of pockets too

I GOT YOU COVERED?...not!

One worthy commenter mentioned a very little known fact. E & O small print is controversial to say the least. It may say you are insured on the policy title, but the small print says with the following exceptions. Interesting to note that those exceptions is where you need the most coverage

HERE'S WHERE THE REAL MONEY IS

Maybe we all should look into starting an Errors & Omissions coverage business. From what I am hearing, you make lots of money from doing nothing literally! If that isn't enough, people love to have you on top of that! This boggles the mind. You just send them a check after check every year

MY AGENT SCARED ME

I remember canceling mine years ago. It was a major decision to make and I pondered it for months. I even asked my carrier agent to explain to me in detail the pro & con of it all. What she did was use fear to convince me that it was necessary. I don't respond well to fear. She had no other argument besides that. Her final "fear" stake through my heart to keep me from canceling...is as follows

FEAR...THE FINAL FRONTIER!

You will not only NOT  be covered in today's litigious world, but all your past coverage will be void and if anyone wants to sue you from years ago, we will not cover you. BUT, I paid you already for that sez I. It doesn't matter! You cancel now, you cancel it all...I said I would get back to her

I never did anything to anybody! Why would they want to sue me? The obvious answer will startle you. Because they can! In America, you can get rich in many ways. Suing someone is one of them.

WHERE'S THE GIVE & TAKE?

The facts are that I have never had a complaint or been sued for my Real Estate practicing which means nothing but should mean SOMETHING but to whom? I mean if you are a model citizen, a good, fair minded individual who does right, then there should be some financial offset there.

HOW ABOUT THIS?

How about: Hello Mr. Naggar! Congratulations! You have never had to use your E & O for five years now so you qualify for the following rewards and prizes. Keep up the good work and always remember to send in your premium...with affection your E & O carrier. Choose one:

1. Free year coverage on us

2. One day and two nights in Las Vegas

3. Discount toward your next insurance purchase

UNCLE SAM'S CUT

Stop and think about all the mandatory expenses one must have in order to be in business. It adds up really fast. The first partner we are all stuck with whether you love or hate doesn't matter is UNCLE SAM. He gets a good third of what you make and has his eyes on half if he can get it (or more)

DOES IT PAY TO WORK?

Then, ALL the insurances one must consider or have like house, car and health. Then add all the other incidentals up, divide them into a small denominator and then deduct them from the dollar bill. I wonder if there is anything left to really have a quality life? Its cheaper to drop out than in!  LOL

WHY IT WORKS FOR ME and NOT FOR THEM!

When my son became an attorney, it came to my attention that I didn't need coverage. He put it like this. Dad, you are paying double. I will defend you so cut the other one loose. It all made sense. If everyone was to send their kid to law school, it would be cheaper and more effective than E & O!

OLD MACDONALD'S FARM

The old MacDonald song would be changed forever if he did not have the Errors & Omissions insurance. How? He would be sued and the song changed to... Old MacDonald may have had a farm, but he had NO E & O and now its gone his little farm E I & O...

 

Richie Alan Naggar          Ran Right Realty       Riverside, Ca

Real Estate Broker and AUTHOR of the popular "PEARLS SERIES" of books on LIFE and LOVE

Richie@RanRightRealty.com         Richie@Pearlsforthesoul.com

PEOPLE FIRST...THEN BUSINESS