Even the most diligent real estate professionals may make errors that lead to costly client disputes. Failing to disclose foundation issues when selling property or providing inaccurate documentation could trigger legal battles that jeopardize both business and career success. Errors and omissions insurance, commonly referred to as E&O coverage, is therefore essential for real estate professionals.
E&O insurance protects professionals against allegations of negligence in their work and can cover lawsuit costs as well as expert witness and court costs associated with these suits. Errors and omissions claims can be costly for real estate firms; having an E&O policy provides peace of mind knowing you have financial safeguards in place to manage such potential liability suits.
Real estate professionals manage large sums of money and must manage a variety of regulatory processes, which could put their business at risk should a client sue over actions you took as an agent. Errors and omissions coverage is designed to safeguard this risk by covering legal costs if someone files a claim against your actions.
Some states mandate E&O coverage for agents and brokers. Even if your state doesn’t mandate E&O policies, investing in one could protect you against potential penalties that could come your way and damage to both your reputation and finances should an E&O claim be filed against you. Furthermore, such costs could even lead to license suspension, potentially ending your career in real estate altogether.
How Much Does Errors & Omissions Insurance for Real Estate Cost? The price of E&O coverage for real estate businesses will depend on various factors, including your industry, experience level and required level of coverage. Comparing quotes is recommended so you get an optimal solution tailored specifically to meet the needs of your business; as an estimate though, monthly costs of errors & Omissions insurance for real estate is approximately $55/month.
Real estate brokers and agents must be very meticulous in their work in order to deliver an excellent level of service for their clients, but with such a high client turnover it can be easy for these professionals to make mistakes that could have severe financial repercussions. From overlooking key information or making clerical errors it’s vital that real estate professionals have adequate coverage in place so costly errors do not compromise their careers.
Real estate professionals should also invest in commercial general liability coverage to guard against common risks such as customer injuries and property damage to the office space. Furthermore, commercial auto policies provide coverage for your company vehicles.