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May | June | 2015 CCIM.com
Determine who is covered. T ere will be a
named insured (specif c brokerage f rm) and
a def nition of insureds/additional insureds
for whom coverage is provided. T ese may
include employees, independent contrac-
tors, personal assistants, and even related
companies. Clarify who is covered to have
a complete understanding of the extent of
the coverage.
Note relevant dates such as the com-
mencement and expiration date of policy.
Most E&O; policies are sold as "claims-made"
policies. A claims-made policy covers claims
that are f led during the policy term. T ere
may be a special provision dealing with cov-
erage for claims that arise from events occur-
ring prior to the ef ective date of the policy.
T e event must have happened during a
specif ed period of time before the initial
ef ective date of the policy. Also, the insured
must not have known of the potential claim
at the time the policy was issued. At the
end of the policy, there may be an extended
reporting period during which claims can
be f led if the event giving rise to the claim
occurred during the policy period.
Compare quotes. To get the broadest
coverage at a competitive premium, com-
pare quotes from several companies. Iden-
tify the companies of ering E&O; insurance
in the marketplace and those including the
f rm's specialty. If using multiple insurance
brokers to obtain quotes, be sure to avoid
duplication of insurance companies.
T ese steps start the due diligence review
of the available E&O; insurance policies.
T ere are additional sections in each policy
to evaluate, which include dealing with
supplementary payments, exclusions, other
insurance, cancellation and non-renewal,
and notice requirements. Using the services
of a knowledgeable insurance broker to pro-
vide a comparison spreadsheet may be very
helpful for making an informed decision.
In states with mandated E&O; insurance
requirements, the scope of the policy's cover-
age may be a part of the statutory or regulatory
requirements. Before selecting any carrier's
policy, compare the policy's coverage with
that of the state's requirements.
Mary Stark-Hood, JD, CFP, is president of the
Hood Group, Inc., and serves as a consul-
tant to the CCIM Foundation. Contact her at
maryshood@comcast.net.
This article is
sponsored by the
CCIM Foundation
@ www.ccimef.org.
Donate today @ www.CCIMEF.org
Advancing commercial real estate education through scholarships, programs, and initiatives.
Did
THERE ARE NOW 75 NAMED ENDOWED SCHOLARSHIPS
The CCIM Foundation's Named Endowed Scholarship program recognizes CCIMs and others who
have made their mark in the commercial real estate industry. Scholarships from these endowments
are available in perpetuity and serve as a lasting tribute to their honorees.
To learn more about the 75 individuals and organizations honored with named endowed scholarships
and to learn how your local CCIM chapter, family, or corporation can take advantage of this program,
please visit our scholarship page at
www.ccimef.org , or email us at info@ccimef.org .
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know
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Recognized Honorees in the
Global CCIM Community