Professional Liability



Larry Harb:               

I wanna talk about professional liability or E&O insurance. And E&O are professional liability to an auctioneer is similar to medical malpractices to a doctor. So, what happens if you screw up? And it’s that simple. Now, so many people—and I know there’s probably not anybody in here that sells real estate ‘cause you would really be in the real estate class right now, but here’s the point. Professional liability is designed to cover you for business services. So, if you perform the service of an auctioneer, you need professional liability or E&O. And, in the insurance industry, we use those terms interchangeably, so don’t get confused—same policy. Usually, we think of a licensed profession as a professional liability; an unlicensed profession as an E&O policy. But we use them interchangeably.

So, if you look at it from those terms and you say, I do business as an auctioneer, you need an auctioneer’s E&O policy. If you do written personal property appraisals, you need appraisal coverage. You need E&O for being an appraiser. And if you do real estate as an agent or broker, then you need coverage for a real estate agent and broker. Now, you could put them all in one policy—doesn’t mean you need three policies. You might, but you can add them all into one. And the only thing I’m saying is, is make sure for whatever services you provide, you’ve got coverage.