Real estate agents and brokers play an essential role in helping their clients navigate a complicated real estate process that often includes large sums of money, emotional turmoil and sometimes stressful conditions. Therefore, it’s essential for them to have protection should any errors or omissions happen that could have serious repercussions for clients; for this they require Errors & Omissions Insurance policies as protection.
E&O insurance for real estate professionals is one of the most widely utilized forms of business protection and required by many states for licensure to practice. It covers legal fees if you’re sued over mistakes in your work and any compensation or damages that might be owed by clients as a result.
E&O insurance not only protects you against expensive claims, but it can also assist with getting back on your feet if a lawsuit does ensue. Your insurer will cover legal expenses such as hiring a lawyer to defend you as well as compensate the claimant according to policy limits.
E&O policies offer protection from errors and omissions that vary according to policy; for example, failing to disclose foundation issues when they exist; not providing key documents or advice needed by lenders on behalf of clients; providing incorrect advice related to property purchases. It even covers legal defense costs should an action be brought against you even if it proves unjustified.
As a rule of thumb, the higher your coverage limit is, the more expensive your premiums will be. But other factors could impact how much it costs – like your location as claims in some areas tend to be more costly than others and whether or not your E&O policy includes claims history in its cost calculation.
If you have a history of filing claims, an insurer might be reluctant to grant you with an increased coverage limit. Therefore, it would be beneficial for you to speak to an E&O specialist prior to purchasing your policy as they can assist in finding an ideal coverage level and reduce risks.
Real estate professionals need E&O insurance, but the exact policy will depend on your specific business needs. At NEXT’s insurance experts can help tailor a policy specifically tailored to fit those of your industry so you don’t pay for coverage that won’t protect against claims that matter most – get started now with a free quote!