Errors and omissions insurance (E&O) provides real estate agents with protection by turning large, uncertain risks into predictable expenses they can budget for, while also covering legal fees or court costs should a client sue you.
No matter how long or new to business you may be, clients could still accuse you of negligence or malpractice – from failing to uphold professional standards, to minor typos on a legal contract – in either instance this can prove costly for your firm if litigation ensues.
E&O insurance for real estate agents can protect their bottom lines from lawsuits by covering court and settlement costs. But before purchasing it, be sure to carefully read through and understand any exclusions and exceptions in the policy such as bodily injury, property damage, employment practices and more – these may exclude you and leave you open to claims that could come out later on your policy if an incident does arise; should this happen, your E&O will cover both defense expenses as well as settlement payments up to its limits.
If you’re shopping around for inexpensive E&O insurance for real estate agents, there are a few companies that can provide quality policies at an affordable rate. It is key that you find one with outstanding customer service and is well established within the industry; some such as Keller Williams or eXp Realty may even assist with claims management or dispute resolution services.
eXp Realty provides its members with its own E&O policy at a relatively low price; however, additional association fees and paperwork must be completed to gain coverage. Established since 1983 and one of the world’s largest real estate firms, their policies have received high marks from industry analysts with up to $2 Million limit per occurrence and aggregate.
Real estate agents aren’t the only ones who make mistakes, which is why it’s vital that they select an E&O insurer who understands your industry and can manage any claims that arise. Some providers also offer additional coverage options such as environmental hazards, public relations strategies, crisis events management plans, property damage policies and cyber liability policies for added peace of mind.
Consideration must also be given to how quickly an E&O provider offers quotes and sign-up. Some offer instant quotes and online enrollment while others may take several days or more to process your application. No matter how quick or slow the process may be, selecting a provider with reliable customer service will ensure you don’t lose out on potential business.