As a real estate broker, your clients entrust you to provide accurate advice. From beginning agents just starting out to established brokers at large firms, all must protect themselves financially against mistakes made during work that cause financial loss due to mistakes and errors made along the way. Errors and omissions insurance (E&O) provides the ideal protection for real estate professionals defending their personal assets against potential lawsuits due to professional negligence.
E&O insurance should always be an important consideration for real estate brokers, even in states where it’s not mandatory. E&O policies protect personal assets, promote professionalism and offer protection in an industry which can often be litigious and complex. In addition, should one of your actions put client finances at risk they could file a claim against you that could tarnish both your career and reputation.
Real estate errors and omissions claims are unfortunately commonplace, even with even the most diligent agents and brokers. Any mistake could cost their clients money or cause the deal to collapse; from misrepresenting square footage to forgetting to sign important documents during closing, any error can lead to costly litigation battles that end in expensive litigation battles.
E&O policies for real estate brokers tend to be relatively affordable when compared with the financial implications of being sued, yet it’s essential that they fully comprehend what coverage is offered and its associated costs; specifically how policy limits might increase or decrease premium costs significantly; it is wise to compare quotes from different providers before making your final decision.
Some licensed brokerage firms provide group E&O policies to their brokers, which cover them while working for that firm. If you decide to leave that firm and become an independent broker or start your own agency, individual E&O coverage must be purchased; in addition, tail policies or another form of insurance may be needed in the interim between your old policy’s expiration and purchasing your new one.
As part of your evaluation of E&O insurance for real estate brokers, it’s also essential to assess your risk tolerance. Some policies limit which claims they’ll cover, such as those related to discrimination or fair housing violations; an experienced E&O specialist can help find coverage tailored specifically to you and your individual needs.
E&O (Errors & Omissions) insurance can be an invaluable asset to your real estate business, providing comprehensive risk mitigation while building client trust in an increasingly important sector like real estate. Although no one likes thinking about lawsuits, it is essential that we plan for them and don’t wait – get an E&O policy today using the simple application process and be up and running in less than 24 hours!