Errors and Omission (E&O) Insurance for real estate professionals is essential. Commonly known as professional liability coverage, E&O coverage protects against legal costs if an accusation from either your clients or third parties allege you made mistakes or were negligent with services provided that caused financial harm or loss for them. A must have for agents, brokers and appraisers.
Real estate mistakes can be extremely expensive, making the situation all the more serious when one small error can result in significant legal fees and reputational harm that threatens to put your business out of commission. Even the best agents and brokers make mistakes from time to time.
Errors & Omissions Insurance may be mandatory in some states; otherwise it’s often optional. If you’re just getting started in real estate or have had legal claims brought against your business in the past, however, an Errors & Omissions policy could be wisely invested in. It can cover expenses if legal disputes arise against your company and could end up saving you from potentially costly legal claims in the future.
E&O Insurance for Real Estate
Receiving your real estate license is an impressive accomplishment, but it’s essential to keep in mind the competitive nature of this industry. Missing details when meeting clients, inspecting properties or reviewing paperwork could cost you clients or cause deals to collapse – even experienced real estate professionals may make mistakes that cost them clients or cause deals to collapse.
An Errors and Omissions policy (E&O insurance policy) can cover legal expenses that may result from client lawsuits against your firm for alleged professional negligence, whether that means misrepresentation, breach of fiduciary duty or even omissions. In real estate businesses this includes everything from misrepresentation to failures in fiduciary duties and even intentional acts that might constitute professional misconduct.
Some states, such as New York, mandate E&O insurance for all active real estate brokers; in other instances, an employer or real estate franchise may require its employees to carry E&O coverage as part of their employment agreement. Therefore, it’s essential that you check with both your employer and licensing authority in your region to find out their specific requirements.
But freelancers still benefit from having an E&O policy. Even though you might work with fewer clients regularly, a single mistake could still have devastating repercussions and lead to an expensive lawsuit that damages your reputation. An E&O policy is relatively inexpensive and very helpful: getting an online quote takes minutes allowing easy comparison between policies & costs before selecting which policy best fits you! We partner with leading insurers so we offer a range of policies – discover more of them now by applying for your individual E&O insurance quote now!