Errors and Omission Insurance, commonly referred to as E&O or professional liability coverage, provides coverage against damages you could be held liable for in the event of being sued by clients over mistakes or mishandled work. Real estate agents like all professionals offer services may make errors that lead to lawsuits; having an errors and Omission policy in place protects against such situations.
One of the biggest myths surrounding real estate agents is that an E&O policy isn’t necessary because their brokerage covers them. However, errors and omissions policies provide protection from client claims made against your firm as well as payment for legal fees should you need to defend yourself against claims.
Let’s say your associate, John, lists a property as having four bedrooms when in actuality it only has three. While that might seem like a minor misstep, clients visiting that home might feel misled and sue over any differences in price between these options; without an errors and omissions policy in place this could potentially cost your real estate firm over $200,000. With an appropriate insurance policy covering it though, those expenses won’t become your burden to bear.
Cost of an E&O policy will depend on the size and nature of your real estate agency as well as what type of coverage is desired. Larger agencies tend to carry greater risks, leading to higher premiums. Your location also plays a part, as some states have higher litigation risks than others.
Even if you are innocent of any allegations made against you, the expense associated with defending against frivolous lawsuits can be prohibitively costly. Our team at NEXT understands this need and tailors each error and omissions policy we offer specifically to each client so they can focus on doing what they do best – selling properties! Our errors and omissions policies offer comprehensive protection from such costs so you can stay focused on delivering what your clients require of you!
Errors and Omissions Insurance for Real Estate Agents is here to help! Our knowledgeable team of licensed insurance experts is standing by to assist in selecting the ideal policies for your business. Just fill out our online form now for a no-cost, no-commitment quote! Our goal is to give you all of the coverage that your business requires – let us make this a success story together! We look forward to speaking with you.