Understanding Corporate Services Risk Issues
Unlike traditional real estate transactional services, such as sales leasing and property management, "Corporate Services" encompasses a whole new dimension of errors and omissions risk to the commercial real estate professional. One of the more important issues is that the risk of loss extends well beyond the date of the real estate transaction. Our commercial real estate clients have been brought into lawsuits well after a sale or lease when the performance of the underlying properties do not meet required objectives.
Corporate Services may include consulting, forecasting, logistics planning and implementation, space planning, tenant rep as well as a host of other services which relate more to that of a business consultant than a real estate broker. Clients often say yes to contracts without taking into consideration whether or not their E&O policy covers them for such contracted services.
Most E&O Insurance Policies Do Not Extend Coverage for These Services. Corporate services has evolved in order to meet the needs of corporate clients. We believe your E&O policy needs to cover your business risks. Our E&O insurance products cover a myriad of Professional Services provided by the commercial real estate firm. We design E&O insurance products that help our clients balance their appetite for risk with these new services, with the peace of mind of knowing they are properly insured. Our experienced insurance specialists can design a competitive E&O program specific to the commercial real estate professional and almost any real estate organization.
Our Errors and Omissions Insurance policies can address many of the following risks which are commonly omitted from a real estate E&O policy.
1. Services Provided Relating to Owned Property
2. Tenant Representation Services
3. Tenant in Common Transactions
4. Pollution Exposures
5. Discrimination
6. Corporate Services
7. Supply Chain Management
8. Outsourced Real Estate Services
One of our licensed specialists would be happy to analyze your current E&O policy and make recommendations on how to improve your E&O program.
Please note that not all coverages are available to every firm and not every service can be covered under a single policy. Each account is individually underwritten and subject to underwriting guidelines.
Mike Smith, President
Axis Insurance Services, LLC