Errors & Omissions Insurance: The Experience of States with Mandatory Programs for Real Estate Licensees

Authors

James E. Larsen, Wright State University - Main CampusFollow
Joseph Coleman, Wright State University - Main CampusFollow

Document Type

Report

Publication Date

12-2004

Abstract

Errors and omissions insurance (E&O) is a mechanism to transfer financial risk, resulting from honest mistakes or negligence committed by a service provider, from both the service provider and the consumer to an insurance company. Real estate licensees in 38 states are free to obtain this coverage if they so desire, but 12 states currently require their active licensees to have E&O. The purpose of this study is to present information that policy-makers should consider in deciding whether to implement a mandatory E&O program in Ohio. Survey data collected from the Real Estate Commission (REC) in the mandated states, 201 REALTORS® operating in those states, survey data collected by the Ohio Association of REALTORS®, as well as empirical data collected from RISC, the preeminent mandatory E&O contract administrator, is presented and analyzed.

Comments

Research Report Submitted to the: Ohio Department of Commerce, Division of Real Estate & Professional Licensing

Repository Citation

Larsen, J. E., & Coleman, J. (2004). Errors & Omissions Insurance: The Experience of States with Mandatory Programs for Real Estate Licensees. .
https://corescholar.libraries.wright.edu/finance/6