What is an O.N.E. policy
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UPDATED: Jun 14, 2010
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Insurance Question from Auburndale, FL
Asked on 06/14/2010
What is an O.N.E. policy I'm starting a property services business working with mortage forclosures one company said i need this type of policy to do business with them no insurance agents I talk seem to know what it is.
Answer given on June 14, 2010
I think what you are referring to is "E & O" insurance, or "Errors and Omissions" insurance. This is a common type of insurance for people in the personal services industries, such as real estate and mortgage companies.
Many licensing agents require that you carry E & O insurance, which is really a good idea, but not everyone carries it. Coming from a real estate background, I can tell you dozens of stories that could have ended badly for one party or another, and if the agent who sold the house or the mortgage representative messed up, they can be taken to court for monetary damages.
Think of E & O insurance as a professional person’s liability insurance. For instance, in the mortgage industry, if a mortgage rep mixes up papers, etc. and can be seen as the cause for the deal not getting done, they can be sued.
Just like someone who does physical work on another person’s property usually has liability insurance, it’s a good idea for someone in your business to carry E & O insurance. Someone will usually require it to work with them, because it provides them with assuarance that there will be financial relief from you in the event it is necessary.
Best of luck!
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