Does E&O Insurance Cover "Do Not Call" Infractions?

During the Region II Caucus at our October 2015 Leadership Conference, there was discussion about whether “Do Not Call” violations are covered by E&O Insurance. While there is no clear-cut answer without an actual claim being reported, consider these remarks:

1. It is illegal to call a residential number with a telephone solicitation* if the number was registered on the National Do Not Call Registry
2. If allegations arise out of professional services defined in the E&O policy, they could trigger an insuring agreement
3. Since the Telephone Consumer Protect Act (TCPA) is a law, if it is broken, there may be no E&O coverage
4. Although some policies offer supplemental coverage for other professional activities, TCPA violations may not be covered
5. If a disciplinary complaint was filed at a real estate licensing board, the violation could be covered as defense of disciplinary coverage
6. Even if the policy affords defense of regulatory complaints, coverage would be for defense costs only and not extend to fines and penalties
7. Brokers are encouraged to maintain written procedures detailing compliance with do-not-call requirements

*Defined as a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods or services

More information may be found here:
Do-Not-Call Violations and Your E&O Insurance
Check Do-Not-Call Registry Before Calling FSBO
Consider Exceptions to the National Do-Not-Call Registry

Tags: DNC, Do Not Call, E&O Insurance, Errors & Omissions, Telephone Consumer Protection Act, TPCA