As doctors require malpractice coverage, real estate agents need Errors & Omissions (E&O) Insurance as a safeguard against mistakes they might make that might harm a client’s transaction. It’s crucial that agents find an E&O policy which offers enough coverage without exceeding budgetary restrictions. Victor offers real estate E&O insurance programs available 24/7 online that are designed to give real estate businesses modern, flexible coverage they require for their real estate businesses. RealCare(r) provides coverage to you and your brokerage for a variety of real estate-related services you provide as an agent or broker, such as listing and selling residential, commercial, farm and ranch real estate listings; property management; leasing agreements; appraisals; auctioneer services. Special member pricing applies. It’s offered to NAR members under RealCare(r).
Most NEXT agents typically pay between $25 to $75 monthly for E&O insurance. This rate provides reimbursement of legal fees, court costs, and administrative expenses associated with defending against negligence or errors and omissions claims from clients. Errors and Omissions insurance often comes bundled with general liability policies making it an economical solution for small real estate businesses.
Real estate agents may face lawsuits due to missteps or oversights during sales transactions. Even the most diligent agent could overlook disclosing foundation issues that cost buyers thousands in repairs; failing to submit contracts or paperwork timely; not properly following up with clients about sales/inspection reports etc may all lead to lawsuits against agents.
Insurance companies consider many factors when assessing a real estate agent’s risk and setting their premium, such as past claims, education, training and experience; location; types of transactions conducted and market conditions in your area; as well as amount of coverage you choose – each can have an effect on how much your premium increases.
For maximum savings, select an E&O policy with higher per-occurrence limits and lower aggregate limits; this will enable you to file more claims before reaching your maximum payout amount. As part of your risk mitigation strategy, it may also be advantageous to secure additional liability coverage in order to fill any gaps that your current policies don’t address. Property damage during an open house typically isn’t covered by an Errors and Omissions policy, so you may require an additional general liability policy to cover this liability. Waste on or around a property typically falls outside the scope of an E&O policy, but may be covered under general liability insurance policies. Therefore, it’s a good idea to consult a trusted independent insurance agency that specializes in real estate errors and omissions insurance for guidance.