What is the minimum amount of Errors and Omissions Coverage required for Exit Sales Representatives?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ire and maintain, at all times during the term of this Agreement, at Sales Representative's own expense, the following:
- i) Automobile Liability Insurance to cover business use of Sales Representative's vehicle (which coverage may be added by Sales Representative to Sale Representative's existing automobile insurance policy) in the face amount of at least $1,000,000.00 combined single limit of liability; or bodily injury liability insurance having limits of at least $250,00
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Sales Representatives are required to maintain Errors and Omissions Coverage. The minimum coverage amount must be at least $1,000,000.00. This insurance is intended to protect the Sales Representative from potential liabilities arising from their real estate sales activities.
Exit also facilitates group coverage for errors and omissions insurance, and Sales Representatives are expected to participate in this group coverage if offered, while still bearing the expense. This suggests that Exit may negotiate a group rate or plan that could be more advantageous than individual policies.
For a prospective Exit Sales Representative, this means budgeting for the cost of Errors and Omissions insurance and ensuring that the coverage meets the minimum requirement. It would be prudent to inquire about the availability and cost of the group coverage facilitated by Exit, as this could be a more cost-effective option. Additionally, understanding the specific liabilities covered by the policy is crucial to ensure adequate protection.