As a real estate broker, your goal should be to offer clients accurate advice and information about properties they’re interested in. Even the most meticulous agents may make errors during property transactions that lead to legal disputes and expensive fees; errors and omissions insurance for real estate brokers offers protection from such risks so one misstep doesn’t derail your career or business. In this article we’ll go over what errors and omissions covers as well as premium costs as well as how to file claims.
What Is Errors and Omissions Insurance for Real Estate Brokers? Errors and Omissions (E&O) Insurance for real estate brokers offers protection from allegations that their services did not deliver as promised, often required by clients or state law. This type of professional liability coverage helps cover legal fees, damages, or settlement costs up to its policy limit.
An E&O policy typically contains two limits; the first being the maximum payout per claim and, separately, its maximum total claim coverage over its term. When selecting an E&O policy it’s essential to take both limits into account as legal risks vary considerably based on business size and risk profile.
Keep in mind that E&O policies typically do not cover criminal or intentional acts; therefore, purchasing separate general liability coverage to address these risks will likely be necessary. Furthermore, you should ensure your business possesses commercial auto coverage for vehicles used exclusively for business use as well as workers’ compensation insurance in case an accident or injury should arise within its operations.
Errors and omissions insurance costs vary for real estate professionals depending on several factors, including business size, claims history and where their office is situated. For instance, New York law suits can often cost more than those filed elsewhere so your insurer will factor this into pricing your policy accordingly.
At Next Insurance, our experts provide a seamless process to tailor an E&O policy specifically tailored for your real estate brokerage’s needs. Plus, we can bundle this coverage with other essential coverage like commercial auto or workers’ comp policies in order to save both time and money – get in touch today to start saving both! Contact us to start saving time and money today; we look forward to speaking with you!