As a real estate professional, you serve as a trusted adviser for your clients. While they expect that you’ll provide expert advice and information to them, mistakes do occur even among professionals that take every precaution possible to provide such service. Without errors and omissions insurance in place to protect against missteps that might result in legal claims or financial losses for both you and them.
Errors and Omissions Insurance or Professional Liability Coverage is designed to protect real estate brokers, agents and appraisers should a client sue them due to an error in their services. Policies typically provide coverage for damages, court costs and any judgments awarded up to their policy limits.
Real estate agents and brokers face numerous risks in their work, from property management and leasing to competing in a highly-competitive industry where stakes can be high when transacting real estate deals. Unfortunately, no matter how hard we try to protect ourselves against mistakes and oversights that still may happen.
If your career is unprotected, even one minor mistake can lead to a lawsuit and put it at risk. Aside from financial costs, lawsuits can tarnish reputations and deter future business; such as failing to include key information in contracts or making mistakes when advertising their services – errors such as these can cost your business dearly.
Errors and omissions are unfortunately a part of real estate industry, and can have lasting repercussions for both personal and professional lives. Therefore, investing in an E&O insurance policy is crucial; in this article we’ll explore what california real estate errors and omissions insurance is, its cost and what coverage comes standard with typical policies.
What Is E&O Insurance in California Real Estate? California real estate errors and omissions insurance (E&O insurance) is a form of professional liability protection designed to shield real estate agents and brokers against claims made by clients over errors or omissions in their services. Real estate professionals should make sure this protection is in place to guard against financial repercussions due to unexpected claims and legal disputes that could otherwise lead to costly litigation costs.
Real estate E&O insurance may not be legally mandated, but it can be an invaluable investment in any industry. Real estate E&O policies help mitigate risk, build client trust and support ethical behavior within the workplace – the specifics of each policy may differ so it’s wise to review what coverage each option provides before making your selection.
At NEXT, we tailor each E&O policy to the needs of our clients. On average, they typically spend $25 to $75 monthly on E&O coverage – significantly lower than the costs associated with real estate litigation without E&O protection. If you would like more information about our offerings of E&O insurance protection, feel free to reach out or request a free quote online now.