Errors and omissions (E&O) occur more often than many real estate agents realize. From mistakes on titles to failing to disclose issues, mistakes can quickly add up and result in large legal bills and irreparable damage to reputations. E&O insurance for real estate provides protection from this potential cost; known as professional liability coverage it should be an essential policy in all states where applicable law mandates it.
How Much Does E&O Insurance for Real Estate Agents Cost? E&O coverage varies widely by state; on average you should expect to spend several hundred dollars per month for coverage depending on its extent and your chosen insurance limits.
However, even an affordable E&O policy can significantly decrease risk and keep your business viable in the event of a lawsuit. It’s worth making this investment for peace of mind and to protect both yourself and your clients.
Real estate errors and omissions can be costly, especially when they lead to costly lawsuits. A comprehensive E&O insurance for real estate policy can protect against such damages by covering legal expenses as well as compensating clients for losses sustained during transactions. With some research, you should be able to find an affordable policy with adequate protection that meets your needs.
Consider getting an online quote and reviewing the details carefully when shopping for E&O insurance, taking note of any important items such as how much of an indemnity payment your insurer will cover should someone sue for errors or omissions in your work and whether defence costs coverage exists if someone alleges something that proves groundless.
Consider whether your real estate E&O policy provides coverage against claims alleging breaches of fiduciary duty arising from any claim that may arise as a result of acting against your client’s best interests if acting as the buyer’s agent. This is particularly crucial.
Make sure your policy will cover legal expenses if required to attend hearings and meetings with state real estate regulatory authorities, since these expenses can quickly add up and have severe repercussions financially. Be fully informed on what it covers before purchasing.
NEXT Insurance tailors its real estate E&O policies to fit the specific needs of each agent or broker. Quick online quotes allow for rapid purchase and immediate certificate of insurance access so prospective clients know you have professional errors and omissions insurance in place. Plus, NAR members can take advantage of special pricing when they purchase E&O policies with us!