Are Exit Sales Representatives required to participate in errors and omission insurance if facilitated as group coverage by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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 participate in errors and omission insurance if Exit facilitates it as group coverage. The Sales Representative must maintain errors and omissions coverage of at least $1,000,000 to protect against liability arising from their real estate sales activities. The Sales Representative is responsible for the expense of this coverage.
This requirement ensures that Sales Representatives have adequate protection against potential claims or lawsuits related to their professional services. By participating in group coverage facilitated by Exit, Sales Representatives may benefit from potentially lower premium rates and simplified administration compared to obtaining individual coverage.
It is important for prospective Sales Representatives to understand the costs associated with errors and omissions insurance and to factor this expense into their business planning. They should also inquire about the specific terms and conditions of the group coverage offered by Exit, including the coverage limits, exclusions, and claims procedures.