Is an unregistered assistant trading in real estate covered under the RECO Errors and Omissions Insurance?
Unregistered Assistants are not covered by RECO’s errors and omissions insurance policy for claims that arise out of prohibited activities such as phone solicitations, showing properties, participating in presenting offers or being on site at open houses. However, the insurance policy may provide coverage for claims against an unregistered assistant (and/or the registrant who may be liable for certain actions of the employee) for activities that are directly or indirectly related to a registrant’s real estate trading activities. For example, if the unregistered assistant makes a typographical error in preparing an Agreement of Purchase and Sale and the error leads to a claim, the insurer may provide coverage directly to the unregistered assistant and/or the registrant, subject to the terms and conditions of the insurance policy. For more information on the requirements under REBBA 2002 for assistants, refer to page 103 of the Guide to REBBA 2002 and the Summer 2007 issue of For The Rec
