Are You an Real Estate Agent, Mortgage Broker or Property Manager Looking to Expand and Increase Revenue? Before getting underway with this task however, errors and Omissions Insurance (E&O) could prove vital in protecting both yourself and your clients from potential mistakes and liability claims.
Real estate professionals are responsible for providing clients with accurate information, handling complex property rental agreements and sales transactions, as well as managing complex ownership issues. Unfortunately, mistakes do happen occasionally and even the most meticulous professional could find themselves being sued by clients for failing to deliver what was promised – this is where Errors & Omissions (E&O) insurance comes in handy; providing protection from costly lawsuits brought against them due to mishap or oversight.
No matter if you work independently as an agent or franchise owner for a major brokerage, no guarantee exists that an employee/employer liability (E&O) policy won’t be filed against them at some point in their career. Therefore many agents opt to invest in E&O policies, which will cover legal expenses and compensation payments in case they’re sued throughout their career – especially important for freelance brokers without access to financial backing like larger firms should a claim come their way.
What Does Errors and Omissions Cover for Real Estate? Although errors and omissions insurance for real estate isn’t mandated by any state, other organizations often require it as part of employee requirements or potential clients asking about your E&O policy before agreeing to work together.
An E&O policy designed for real estate can provide essential coverage against lawsuits filed by clients against you due to mistakes or oversights during your work as an agent, mortgage broker or property manager. This could include failing to disclose foundation issues that would cost buyers too much money to fix, or forgetting to submit documentation on behalf of clients to lenders on time.
Errors and omissions claims can be costly to defend, so it’s wise to obtain an individual quote for your company before selecting an E&O premium premium. On average, active NEXT customers pay $55 monthly; this may differ depending on individual risks or needs.