Real estate agents and brokers bear the responsibility of leading their clients through an often complicated property-buying or selling transaction, taking into account both physical structures as well as any emotional or financial considerations that may come up as they navigate this transaction. While professionals try their hardest to provide accurate advice without leading to legal disputes arising due to missteps; errors and omissions insurance (E&O) covers these potential scenarios.
Numerous individuals enlist experienced professionals for guidance on issues pertaining to home ownership, real estate transactions, tax preparation and investments. Unfortunately, even experienced experts can make errors which lead to serious financial loss for their clients; due to this reality many states require those providing professional services to carry Errors and Omissions Insurance or E&O coverage as part of their licensing requirements.
E&O coverage, or errors and omissions (E&O), insurance provides essential protection to real estate agents, mortgage brokers, appraisers and other professionals from claims made against them for providing incorrect information or otherwise failing to perform their duties competently. Often purchased alongside general liability policies to safeguard small businesses against major lawsuits that can financially cripple them.
Errors and omissions claims are typically filed by disgruntled clients who believe a real estate agent or broker failed to negotiate a fair deal for them, provided substandard advice, mishandled paperwork or made some other mistake that caused loss or injury to them. When this happens, E&O insurance typically provides compensation for legal fees as well as damages awarded to clients.
Real estate Errors and Omissions insurance costs can vary significantly, depending on the coverage selected and size of deductible chosen. Higher limits typically cost more, yet provide greater protection in case of claims. Other factors that can sway pricing of E&O policies include age and industry wherein insured works.
Finding cost-effective E&O insurance for real estate agents is possible, but you need to do your research and find a company that provides quality coverage without charging excessive premiums. Some providers require you to have purchased a certain level of general liability coverage before offering E&O, while others simply provide it as an add-on policy.
OREP provides affordable Real Estate E&O insurance at competitive rates, featuring coverage for undisclosed fungus and bacteria exposure, legal assistance in disciplinary proceedings, on and off job coverage, fair housing discrimination protection, as well as on and off the job coverage that meets budgetary constraints. Let us help you compare options that best meet your specific needs while finding an E&O policy within minutes of calling us or applying online today – most quotes can even be provided instantly!