Foreclosure Cleanup Insurance: Do You Need Errors & Omissions (E&O) Insurance for Your Foreclosure Cleaning Business

Some foreclosure cleaning business owners report being asked to prove that they have up Errors & Omissions insurance by larger contractors before they can be considered for subcontracting opportunities.

Here’s the real deal on this type of insurance.

ANSWER TO QUESTION ABOUT ERRORS & OMISSIONS INSURANCE FOR FORECLOSURE CLEANUP BUSINESSES

The answer is, you really don’t need errors and omissions insurance to handle simple trashout jobs.

Many of the larger companies probably ask potential subcontractors for it because they use the same application process as real estate agents and others who handle foreclosed properties. FYI, realtors are required – as part of their trade – to have E&O insurance.  Hence, it’s a box that must be checked on many forms for realtors.

If larger companies use the same form, many assume that if the box isn’t checked, then you are “missing” something – when indeed it is not required at all.

Simply inform those who request it that you are NOT a realtor (ie, you do not handle foreclosed properties). Impress upon them that you are a foreclosure cleanup business – and you are not required to carry Errors and Omissions insurance as part of your trade. Read more on the type of insurance you need for your foreclosure cleanup business.

Learn more about what types of coverage and how much of each you’ll need in this detailed booklet on foreclosure cleanup business insurance.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.