For Remax franchisees, what is the requirement for the retroactive date on the real estate errors and omissions professional liability insurance policy?

According to Remax's 2025 Franchise Disclosure Document, franchisees must secure real estate errors and omissions professional liability insurance with a minimum coverage of $1,000,000 per occurrence or claim and annual aggregate. The policy's retroactive date must pre-date the commencement of any professional services performed by the Remax franchisee. This requirement ensures that the franchisee is covered for any errors or omissions that may have occurred from the beginning of their professional services.

This insurance coverage extends to the franchisee's sales associates as well. Remax franchisees must either secure endorsements covering each of their sales associates under the errors and omissions policy or ensure that each sales associate independently secures real estate errors and omissions professional liability insurance with a minimum coverage of $1,000,000 per claim and annual aggregate. This dual approach ensures comprehensive coverage for both the franchisee and their sales associates, mitigating potential risks associated with professional services.

In practical terms, a new Remax franchisee needs to obtain errors and omissions insurance that covers them from the date they start providing real estate services, not just from the date the insurance policy is purchased. This protects them against claims arising from past actions. It is important for prospective franchisees to understand these insurance requirements and factor the costs into their business planning.