Real estate can be an intricate industry, and errors and omissions insurance for real estate professionals is one of the best ways to safeguard against costly errors that could come back to haunt your business from lawsuits that threaten its bottom line. E&O coverage for brokers is generally affordable – many states even mandate E&O coverage as part of licensing agents and brokers’ professional liability policies.
No matter the size or scope of your brokerage, mistakes and missed information are inevitable at some point. While medical malpractice has more serious repercussions for real estate agents and brokers, making errors at work has even greater consequences; reputation damage could even end your career! You can reduce risks by practicing diligence and creating an environment of accuracy within your team – although even careful businesses could face legal claims for service errors in the future.
Errors and omissions insurance for real estate agents, brokers and appraisers provides protection from lawsuits or legal claims brought against your business as a result of its services rendered. Typically these policies also cover legal fees and expenses should the case against you be unfounded.
Common claims against real estate firms typically stem from miscommunication, poor advice or failing to disclose information to clients. For instance, failing to notify clients about foundation cracks that will cost thousands to repair could leave them open to being sued.
E&O claims can also result from not researching comparable properties or suggesting inappropriate bids when purchasing properties, and failing to disclose waste – an obligation typically required in most states – even though its presence must be disclosed. Absent any exclusion clauses, errors and omissions insurance for realty brokers typically covers these losses up to your policy limit.
Errors and omissions coverage is an absolute necessity for every real estate broker. Thankfully, this type of protection can be purchased affordably and added onto existing policies with general liability coverage. Victor offers a tailored E&O solution tailored to meet the unique needs of real estate brokers at an extremely competitive rate – request a quote now for real estate E&O insurance!