As a real estate professional, your role involves helping people buy and sell properties. While the process may be complex and emotional for all parties involved, even diligent agents may make mistakes that cost clients money or cause deals to fall through. Should a dispute arise between yourself and one of your clients, having professional liability coverage for real estate professionals could help cover legal fees as well as compensation due to them.
E&O insurance for real estate professionals is required in many states for all licensed brokers, broker associates, residential rental agents and property managers. Freelance brokers should consider purchasing such coverage since working without financial backing can make managing claims more challenging if a claim occurs against them; such an agreement covers you in case a client sues due to mishandled documents or inaccurate information provided to them by you.
Real estate transactions can be an expensive endeavor for your client. They rely on you as their trusted adviser, to advise them along the way and protect them from mistakes made by other parties involved in the transaction. If, for example, you fail to disclose foundation problems on a home you are selling them, the homeowner could file suit over it. Therefore it’s essential that high standards of professionalism, clear communication with clients and following best practices among real estate professionals are upheld; no one can guarantee 100% risk elimination though!
Legal fees can be an expensive burden for any business, while being found liable can lead to costly damages payments. Errors and omissions insurance for real estate helps cover legal fees while compensating clients who’ve experienced losses as a result of your mistake.
Speaking with an insurance agent who specializes in real estate can help you obtain an accurate quote for E o insurance for real estate policies. Your location, coverage limits chosen and deductible amount all play an impactful role when calculating price; so speaking to one will guarantee you have a policy tailored specifically to the needs of your business.
South Dakota Real Estate Commission requires all active brokers and broker associates to carry errors and omissions insurance, with Rice Insurance Services Company administering group policies for licensees who belong to licensed real estate brokerage firms. Brokers leaving an existing firm are expected to purchase individual E&O or “tail” policies in order to remain covered.
NEXT provides customized real estate errors and omissions policies tailored to the unique needs of every business. Our competitive insurance packages can be easily financed over an appropriate term that meets your business goals. Get in touch with us for more details; our helpful staff will guide you through each step from applying to setting up payments – most clients pay between $25 to $75 monthly with us for E&O coverage with low deductibles!