Errors and Omissions Insurance, or E&O or professional liability coverage, is an essential form of coverage that provides financial protection in case a claim against your real estate business arises. Much like malpractice coverage for doctors, E&O insurance offers financial security in case something goes wrong in real estate sales transactions. Some states even mandate E&O coverage before entering contracts with real estate professionals.
Real estate agents face high stakes when making mistakes and claims are frequently filed against agents for mistakes they commit, such as failing to disclose an issue with a property that caused its buyer to withdraw from the deal or accidentally damaging client properties during showings and inspections.
E&O claims can also arise from more subtle mistakes. For instance, an agent could leave comments in their MLS entry that create an unsafe environment or are inaccurate descriptions of properties listed for sale; such errors could lead to lawsuits against your agency and damage your reputation.
Though you might recognize E&O insurance is necessary for real estate professionals, it can be confusing as to exactly what it covers and its cost. On average, E&O policies for real estate typically range between $500-1000 annually depending on state and coverage level; large agencies could pay upwards of $50,000 while independent brokers often enjoy lower premiums.
Next Insurance stands out in the E&O insurance marketplace by providing user-friendly experience tailored to small businesses, offering quick quotes online and helping to tailor policies specifically to meet needs. They also bundle coverage like general liability and worker’s compensation policies together, offering cost savings.
As a real estate professional, your responsibility lies with guiding clients through the complex process of purchasing or selling a home. This can be an extremely stressful time for clients; any mistakes could have serious repercussions; even experienced agents could make errors during their work process.
Errors and omissions claims can be costly if successful; with proper coverage you can protect yourself financially as well as maintain your credibility as a real estate professional. Victor offers real estate agents and brokers state-of-the-art E&O coverage that addresses an extensive array of errors; NAR members can even benefit from special members-only pricing on this insurance through Victor! Get your fast, free error and omissions quote now; it only takes minutes!