Experienced real estate brokers know that working in the field can be risky business. Dealing with large sums of money, complex legal processes and outside parties all create opportunities for mistakes that could cost your business dearly – which is why errors and omissions (E&O) insurance for brokers is such an invaluable protection against costly lawsuits from clients who allege your service was in error or incorrect advice during property sales/purchase transactions.
Many states do not mandate real estate professionals to carry errors and omissions insurance; however, most brokers should do so as it’s still beneficial. When handling high-value property purchases or sales transactions, clients may expect you to provide proof that you possess this coverage before signing contracts with you. Plus, in case a legal dispute arises between yourself and one or more clients occurs, real estate E&O coverage can help pay legal fees as well as compensation due.
How Much Does Errors & Omissions Insurance for Real Estate Brokers Cost? The costs of errors and omissions insurance for real estate brokers will depend upon your unique business’s situation, coverage limits and other considerations; but in general it should cost $25-75 per month – an affordable price to pay for knowing you have financial protection should someone file a claim against your firm.
There may be various reasons for someone to sue a real estate professional, including:
Imagine an example wherein your fiduciary duty has been violated by failing to disclose a flaw in a home’s foundation before signing the contract for sale of this property to your client, leading them to incur costly repairs or even take legal action against you. Errors and omissions insurance for real-estate brokers provides peace of mind in knowing that any situations of this nature will be covered. NEXT tailors every error and omissions insurance policy specifically to each of its customers, so you can be confident you have enough coverage for your real estate business. Contact us now to find out more about E&O insurance for real-estate brokers! We can walk you through your options and help you identify the ideal coverage option for you. Additionally, we’ll explain any coverage details so that you have a full understanding of your E&O insurance for real-estate brokers policy before creating a personalized quote for it.