Just as doctors need malpractice coverage, real estate agents and brokers require errors and omissions (E&O) insurance to cover legal expenses should their client or third-party allege their professional services caused financial damages or losses to themselves or third parties. Even when these allegations are without merit, legal defense costs could prove prohibitively expensive; without E&O coverage your business could experience unimaginable financial strain that you cannot afford to defend in court.
Real estate is an intricate industry with multiple moving parts, which makes mistakes easy to make that can result in legal claims. Even with proper training and attention to detail, mistakes will happen–sometimes with severe repercussions–for instance if you list an incorrect square footage or fail to notice structural defects in an inspection, which could cost your business thousands of dollars in legal claims.
Remembering the potential damage a lawsuit can do to your reputation is also crucial. A comprehensive E&O policy can help to safeguard this by showing clients you are dedicated to their protection, giving them peace of mind knowing you will do whatever necessary to settle their dispute quickly and successfully.
E&O insurance not only covers legal costs, but can also assist with restoring or repairing the reputation damage from covered claims, providing another valuable tool for keeping clients and expanding your business.
E&O insurance is typically required of real estate brokerages, while individual agents may find it beneficial in order to meet their brokerage’s standards or in order to meet client demands for working together with them.
No matter if you are an independent agent or the proprietor or franchisee of a large firm, chances are at some point your agency or franchisee could face an insurance claim. With this coverage in place, any such situations should be managed efficiently while keeping business going without interruptions.
As a member of NAR, you have access to the National Association of REALTORS(r) E&O insurance program through Victor Insurance Managers Inc. This streamlined process makes securing quality E&O coverage simpler than ever! For more information and savings opportunities regarding this program click here – get ready for quality coverage at an incredible value!