The Financial and Professional Upsides of High Transaction Coordinator Usage in Your Brokerage
In any given real estate transaction, a multitude of details need to be meticulously managed. This is where Transaction Coordinators (TCs) come into play. Not only do they help streamline your workflow, but they can also translate into substantial savings on your Errors and Omissions (E&O) insurance premiums. Let's delve into how employing TCs can be a boon for your brokerage, both operationally and financially.
The Link Between TCs and Lower E&O Insurance Costs
Some Insurance companies understand that employing a transaction coordinator helps standardize procedures, reduce errors, and improve the overall quality of service. As a result, brokerages with high TC usage—above 75%—often receive discounted E&O insurance premiums. It's an acknowledgment from the insurance sector that such brokerages possess superior internal controls and oversight, ultimately lowering the risk of costly errors or omissions. Insurance companies rarely deny claims but this can help to get better rates.
Education and Certification: Another Avenue for Savings
Further reducing your E&O insurance costs are factors like continuing education and agent certification. Insurance providers often consider how many agents in a brokerage attend continuing education programs. Additionally, agents obtaining their broker's license or gaining professional certifications can contribute to even lower premiums.
The AIDE Advantage
While the industry is catching up to the benefits of employing TCs, AIDE takes it a step further. All our Transaction Coordinators undergo frequent and ongoing training to ensure they remain on top of industry best practices. Moreover, AIDE has its own E&O insurance coverage, which can minimize the potential impact of a claim on your brokerage's E&O insurance in the long term.
The right connection can be a game-changer. AIDE has the resources to connect you with insurance brokers who consider high TC usage when determining E&O insurance costs. With the correct connection, you can take advantage of credits and reduced premium costs, typically ranging between 3-5%.
Additional Benefits of High TC Usage
Utilizing Transaction Coordinators in every file isn't just about insurance savings; it's about creating a more efficient and reliable operation. This requirement enhances accountability and ensures the completeness and timeliness of each transaction file, which makes regulatory compliance easier and further minimizes the risk of errors.
Wrapping it Up
By now, the financial incentives for employing transaction coordinators should be clear. Not only do they bring an extra layer of safety and professionalism to your transactions, but they can also contribute to significant E&O insurance savings. In a world where every dollar counts, that’s a win-win situation that’s too good to ignore.
If you're interested in learning more about how to save on your brokerage's E&O insurance through the use of Transaction Coordinators, AIDE can connect you with the right insurance brokers who factor in TC usage. Save time, reduce risk, and manage costs more effectively—AIDE is here to help in more ways than one.
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