Errors and omissions insurance (also called professional liability insurance) provides real estate agents, brokers and appraisers with coverage against claims of falling short of client expectations or financial damage caused by their work. It’s an integral policy in real estate – even unintentional mistakes can cost money in legal fees and settlement fees if mistakes happen!
E&O insurance covers legal fees and settlement costs associated with claims up to your policy limit, offering your business vital protection during times of potential missteps in financial matters. Peace of mind allows your team to do its best work without worrying about what might go wrong in any given day.
However, errors and omissions can happen no matter how carefully you act. For instance, you might forget to disclose a significant foundation issue that costs thousands to fix; the homeowner might sue alleging you misrepresented their property’s value without providing this information; E&O insurance might cover legal costs but you would still be responsible for covering foundation repair expenses out-of-pocket.
Errors and omissions in real estate are unfortunately all too often, making it essential to know exactly which errors your E&O policy does not cover – such as criminal acts or fraud-related claims. Furthermore, all relevant documents and communications should be preserved as soon as an incident may lead to a claim and notify your insurer as soon as you become aware of an incident that might lead to one; doing this immediately helps avoid gaps in coverage that might leave claims denied or underpaid.
Real estate businesses should also invest in general liability and commercial auto policies to protect themselves against customer injuries, damage to customer properties, advertising injuries and other common risks. They’re usually relatively inexpensive compared to the expense of defending lawsuits; you could save money on E&O premiums with them as well.
Errors and omissions insurance (E&O insurance) can be an efficient and cost-effective way to safeguard small businesses against unexpected risks. Most NEXT customers typically pay around $55 monthly for E&O coverage; the exact price you pay may depend on your individual risks. As an example, if your clients include high-net-worth individuals, your premium may increase accordingly. Furthermore, business size and claims history will impact your premium rates; regardless of these circumstances though, NEXT experts will work to customize a plan specifically tailored to meet the risks faced by your organization. Start a quote online or reach out to one of our experts by phone – either way our straightforward process makes it simple for you to obtain a custom policy quickly! Plus we provide discounted bundled pricing packages that combine several essential real estate policies such as general liability and workers’ comp.