As a real estate agent or broker, your job is to advise clients on sound investments and facilitate successful property transactions. Unfortunately, errors do occur – and their consequences could be financially ruinous if not insured properly against liability issues brought forward by clients. That is why E&O insurance for real estate agents provides essential protection against the costs of lawsuits brought by clients against them.
Errors & Omissions (E&O) insurance for real estate is one of the most prevalent forms of liability coverage available, offering protection from the financial repercussions associated with claims brought by clients regarding work-related errors or errors made on your part. E&O coverage typically comes as part of a comprehensive business insurance package but can also be purchased independently.
Real estate agents may find themselves facing lawsuits for misrepresentations or negligence for various reasons, such as misrepresenting properties to prospective clients. Even the most diligent agent could make mistakes that cause financial loss for clients such as failing to disclose foundation issues in a home or failing to submit required paperwork on their behalf to lenders. Even when claims are frivolous, defending yourself can still be expensive and it might require you to pay compensation to resolve matters quickly.
E&O insurance for real estate can provide invaluable peace of mind to both you and your clients, giving them peace of mind when working without worrying about possible lawsuits or penalties. With coverage in place, you can focus on doing what needs to be done without fearing lawsuit repercussions.
Your brokerage requires appropriate insurance to keep up with an ever-evolving industry, and Victor provides a top-of-the-line Real Estate E&O insurance program designed to meet their needs. NAR members can take advantage of NAR REALTOR Benefits’ member pricing for this coverage.
There may be exclusions to your E&O policy which can be found in its contract, but generally speaking an E&O policy covers claims for damages such as those listed above. However, an E&O policy usually doesn’t cover property damage claims that would fall under general liability coverage; so having separate policies to cover things like bodily injury or property damage claims during open houses and events would provide adequate protection.
Click here for an online quote for full E&O and general liability policies for your real estate firm, then fill out a brief form and we will connect you with one of Victor brokers. Policies can be purchased anytime, and modifications or cancellations made as needed; all that’s required is valid licensing documents, copy of current agency E&O policy and signed supplemental enrollment form (we would also be more than happy to discuss any additional coverage options that might be beneficial).