Overview

All licensed team members at Scenic Sotheby’s International Realty are required to maintain Errors and Omissions (E&O) insurance coverage. This policy provides protection against claims alleging mistakes, negligence, or omissions made in the course of providing professional real estate services.

Monthly Premium

Each team member contributes to the company’s master E&O policy through a monthly fee of $61, which represents their pro rata share of the total policy premium. This amount is automatically billed via Scenic Connect.

Deductible Responsibility

In the event of an E&O claim, there is a $10,000 deductible applied to the claim. The responsibility for paying that deductible is shared between the company and the team member based on the team member’s compensation plan split in effect at the time of the event giving rise to the claim.

For example:

If a team member was on an 80/20 split (80% to the agent, 20% to the brokerage) at the time of the event, the team member would be responsible for 80% of the deductible, or $8,000, and the company would be responsible for 20%, or $2,000.

Key Notes

• Coverage is mandatory for all licensed real estate professionals affiliated with Scenic Sotheby’s International Realty.
• The E&O policy protects both the individual licensee and the brokerage.
• Deductible responsibility is determined by the split at the time of the incident, not at the time of claim filing.
• Failure to maintain good standing under this policy may result in suspension of license affiliation.