Errors and Omissions Insurance California Real Estate provides real estate professionals, such as agents and brokers, protection against claims related to the advice or services they provide. E&O insurance covers legal fees associated with defending lawsuits even when their merit cannot be proven – which makes E&O policies essential for anyone providing services like lawyers, home inspectors, wedding planners and financial advisors.
Real estate professionals need errors and omissions insurance as quickly as things can go wrong in this industry. Even accidental errors could result in costly lawsuits that threaten both cash flow and reputation, without E&O coverage you could incur high legal fees as well as damages that put your business at risk of bankruptcy.
E&O insurance can also protect your career, providing comprehensive risk mitigation against mistakes and oversights that may occur within this industry. While E&O coverage isn’t mandated in many states, many real estate professionals find it advantageous to acquire this coverage anyway; bank partners and franchises may require it before engaging in business relationships with them.
Errors that occur in real estate transactions often lead to lawsuits, for reasons as varied as failing to disclose information to clients, making clerical errors in contracts, mismarketing properties and failing to disclose pertinent details to buyers and sellers. Such mistakes could cost both you and your client money or even cause the deal to collapse altogether.
Error and omissions (E&O) insurance is the go-to form of coverage, but other policies may also help businesses protect against various claims. A business owners policy (BOP), for instance, can help cover damages to your property or assets, workers’ compensation insurance will pay out when employees get injured and illness arises within your organization, and employment practices liability covers claims such as discrimination or harassment from employees.
An errors and omissions policy usually costs approximately $735 annually, though its price can differ depending on your profession and coverage needs. Professions with higher risk tend to pay more for an E&O policy; size of business and limits also play a factor when calculating this cost; so getting a personalized quote for your organization can help determine which options meet both needs and budget constraints.