Real estate mistakes can be costly–even when they’re not your fault. When dealing with large sums of money, complex legal processes and outside parties, any mistake could result in costly lawsuits against your brokerage or company. Errors and omissions insurance (E&O) is designed to cover you against financial risks related to these legal proceedings.
Errors and omissions coverage for real estate brokers usually includes legal expenses associated with errors or omissions arising during the buying and selling of properties, from giving inaccurate information about features to forgetting to sign an important document at closing. Even diligent agents can make mistakes; for example, sellers might misinform an agent that their home connects to city sewer system when in reality it has a septic tank system instead. Should that information go unknown by buyers later on in their transaction process, an error and omission claim could arise against agents for failing to disclose important information during negotiations or contracts between parties involved.
Real estate E&O insurance is an essential component of being a broker, regardless of your brokerage type. Clients often require proof that you possess this coverage before agreeing to sign a contract for services provided. Furthermore, having E&O coverage in place can help avoid expensive nuisance lawsuits while it may be required in your licensing regulations.
Some states, like North Carolina, mandate that licensed real estate professionals obtain errors and omissions insurance (E&O). Furthermore, brokerages frequently have E&O policies they require real estate professionals to purchase on their behalf. Errors and omissions coverage usually covers third-party claims against professionals; it generally does not extend to transactions involving self-dealing transactions (agents acting as sellers/buyers of their own properties).
Professional liability insurance provides coverage against errors and omissions as well as wrongful termination, libel/slander claims and property damage – making this form of professional liability coverage particularly well suited for real estate professionals. This insurance can even cover termination without cause and wrongful termination during employment contracts – leading some people to refer to it as general liability for real estate professionals.
Real estate brokers frequently add an “extra insured” endorsement to their policies as an extra measure of protection in case an additional party, such as a lender or mortgage broker, makes claims against them.
Victor E&O provides modern and flexible coverage that meets your real estate brokerage’s needs. As an NAR REALTOR Benefits(r) Program partner, we also offer members-only pricing. Request a quote now to begin coverage right away – or contact us anytime to speak to an E&O insurance specialist directly if necessary – get quick, easy quotes on the best E&O insurance for real estate agents and brokers with us! All Rights Are Reserved by Aspecta Digital Marketing who designed this website.