As a real estate agent, errors and omission insurance (E&O), commonly known as professional liability insurance, should be an essential component of your real estate business. Here we explain what E&O covers as well as how much it will cost to acquire it.
Property acquisition and sales can be a complex, high-stakes experience for clients involved. Real estate agents and brokers play a pivotal role in helping guide clients through this complex journey – which may prove emotionally taxing for some individuals. So when something goes awry (such as miscalculating mortgage amounts or failing to have clients sign a legal document during closing), the results can be devastating to business. Real estate agents and brokers could face costly lawsuits that threaten to bankrupt their companies if their claims are even remotely meritorious. Therefore, it’s vital that every real estate company have proper coverage in place – one way of doing this would be investing in an adequate errors and omissions policy.
Errors and Omissions insurance for real estate agents is sometimes known as E&O or professional liability insurance, providing protection from client claims that arise as a result of errors made during their partnership. Policies typically cover costs such as legal fees, damages settlements or any potential lost income that might occur from being involved in a lawsuit.
One reason E&O insurance could benefit your real estate business is because it protects against claims related to professional negligence – unlike general liability policies which generally only cover damage done to customer property or injuries sustained during visits to your business premises.
Some states mandate real estate agents and brokers hold an errors and omissions policy as part of their licensing requirements for working in the industry, while many real estate agencies and brokerages also opt to purchase an E&O policy as an intelligent business decision. At NEXT Insurance Services we tailor every E&O policy specifically to each firm so you know you are getting protection at an economical price point.
No matter where you stand in your real estate career, having proper coverage is vitally important. To begin shopping for E&O insurance for your real estate agency, contact NEXT today – one of our insurance experts would be more than happy to assist in selecting an optimal policy suited specifically to you and your circumstances. Plus, most policies cover mistakes made on previously closed deals so long as you remain insured!