Real estate is an exciting and fulfilling career, but not without risks. Mistakes can be costly to both your reputation and bottom line; thus, having adequate Errors & Omissions insurance (known as E&O insurance in real estate lingo ) coverage in place can protect against financial consequences of lawsuits that might occur against you as an agent. Here are a few things to keep in mind when searching for E&O policies:
Assuming you’ve passed your real estate license exam is an exciting milestone in your career; but this should just be considered the beginning. Now that you’ve achieved this feat, the journey ahead could prove exciting, challenging, and lucrative! With all this excitement at stake it’s essential that before starting to build your real estate empire you secure a comprehensive errors and omissions (E&O) policy to protect against errors that might arise along the way.
Your insurance coverage requirements depend on the nature and scope of your work, state licensing status, business structure and level of risk you assume through performing it. In general, higher risk can translate to higher premiums; however there are numerous other variables which could alter its cost significantly – especially E&O insurance for real estate agents.
E&O insurance for real estate professionals typically covers legal fees and any compensation or damages you owe if sued by clients due to errors in your work, such as failing to disclose foundation issues in the property you listed for sale. Your E&O policy would then help cover up to its limit any compensation payments owed from clients for errors that cost them money; such as failing to disclose that an error cost them money – your E&O policy would provide this coverage.
Some states mandate E&O insurance coverage for real estate agents and brokers, while clients may insist upon it prior to hiring you to manage their transaction. Even if E&O coverage isn’t required of you, it is highly advised that you get one and also consider purchasing general liability coverage to help protect against accidents or injuries that might happen while working.
Real estate agents need E&O insurance at an affordable cost in order to be fully protected, without breaking their budget. When shopping around for an E&O policy for real estate agents, make sure it offers features such as legal aid during disciplinary proceedings, coverage for undisclosed fungi or bacteria on properties, lock box incidents coverage and fair housing discrimination lawsuit protection.
NEXT Insurance customizes each E&O policy to meet the needs of its individual client, typically costing them between $25 to $75 monthly for coverage. You can easily obtain an instant online quote for quality real estate errors and omissions insurance through us!
Victor Insurance provides real estate agents and brokers with the modern, flexible E&O insurance they require for running successful businesses. In partnership with NAR, Victor offers members-only pricing on its state-of-the-art policies.