What does the REIA E&O insurance program protect members from?

• A. Financial loss due to errors, omissions or negligent acts in the course of duties as defined by provincial licensing legislation
• B. Liability for unrelated personal injuries
• C. Property loss due to tenant damages
• D. Tax penalties on real estate transactions

Answer: (A)

Professional liability coverage protects members against financial loss suffered by clients or third parties due to mistakes, omissions, or negligent acts in the course of delivering real estate services, as defined by provincial licensing rules. The REIA E&O program is designed to cover those claims, including defense costs and settlements, when a client incurs a financial loss because of the member’s professional services. It does not cover bodily injuries, property damage caused by tenants, or tax penalties from real estate transactions, which require different types of coverage. For example, if a licensee gives incorrect advice or fails to disclose a known defect and a client loses money as a result, E&O would respond. If there’s an injury on-site or tenant damage, those risks fall outside E&O.