Real estate careers can be very rewarding and risky at the same time, and mistakes or oversights could easily cost your reputation and client. Therefore, having reliable yet affordable error and omissions (E&O) insurance policy to protect yourself is of utmost importance. In this article we’ll go over what E&O is and why you need it, its costs for real estate E&O policies as well as effective ways of finding one tailored specifically to you needs.
Errors and omissions insurance (E&O) provides protection to individuals and businesses involved in real estate for legal claims related to errors or negligence in performing their work, which could potentially expose them to legal claims and losses from errors or negligence claims. Similar to malpractice coverage for doctors, errors & omissions coverage pays for legal representation when necessary and compensates any compensation awarded or judgment awarded as well as covering any awards against an individual’s professional liability policy.
Even the most careful real estate agents and brokers make mistakes from time to time, whether it’s failing to disclose known issues, failing to market properties properly or making paperwork mistakes that lead to costly disputes with clients. E&O insurance can help cushion any negative repercussions so you can remain focused on what’s most important – serving clients.
Real estate E&O insurance is often required by state laws for real estate professionals. Additionally, it’s an excellent idea for freelancers working independently to carry E&O coverage as it can cover expenses resulting from claims that could otherwise have devastating repercussions for both their career and finances.
Gaining access to real estate E&O coverage can be straightforward. Your premium will depend on several factors, including the size and history of claims filed by your business; your location can also have an effect on risk exposure.
Errors and omissions policies don’t just provide protection for real estate agents; they’re also designed to cover title abstractors, home inspectors, mortgage loan originators and others in the industry.
Find an E&O insurance policy tailored to your unique risks can be achieved in several ways. First, assess your risks and goals before considering limits and deductibles you wish to set in your policy. Finally, compare costs across policies in search of one with reasonable premiums.