Purchase of real estate errors and omissions (E&O) insurance is an integral step for real estate professionals seeking to protect themselves against costly legal claims that may arise during their business activities. Unfortunately, costs for this coverage can differ considerably depending on numerous variables unique to each real estate business – by understanding these variables more deeply, real estate agents can better control E&O insurance costs while still providing adequate protection from professional liability lawsuits.
Real estate agents are often held liable for failing to disclose material facts about a property, such as environmental or structural defects, which could lead to costly lawsuits that are paid out-of-pocket by agents rather than through their E&O insurance policy. Other errors or omissions that can cause claims include providing inaccurate documentation, breaching confidentiality agreements or failing to adhere to laws and regulations.
Errors and omissions (E&O) insurance for real estate is more than just an excellent idea – in certain states it’s actually required. State regulations vary but typically real estate agents must hold at least a $100,000 aggregate limit E&O policy to operate legally in that state. Some may even require background checks and proof of financial responsibility prior to licensing requirements being met.
When purchasing E&O insurance for real estate, it is vitally important that you select a provider with expertise in this type of coverage. Not only will they have a greater understanding of its unique risks, but their ability to spread them among many insureds also allows for competitive rates.
Purchase policies with multiple coverages to reduce risk, including commercial general liability, workers compensation and cyber insurance. Furthermore, consider policies with high claim limits to provide extra protection in the event of a claim.
Before making a final decision, it is wise to compare E&O policies from different providers and shop around. Many offer free, no-commitment quotes which should help narrow your selection process down further.
An E&O insurance real estate Colorado policy is key to protecting your business. By helping to avoid costly claims and keeping things running smoothly, this coverage will enable you to focus on serving clients better while meeting their needs more easily.
PBI Group, a premier provider of E&O Insurance for Real Estate, provided this article. To find out more about their insurance solutions and get them under your umbrella today! Contact them to discover more!
*These sample quotes are calculated based on information available at the time of writing and may change without notice. Your premiums and coverage amounts may depend upon factors like insurer selection, actual claim experience and your policy’s terms, conditions and exclusions.