Real estate can be an extremely costly venture, and errors and omissions insurance for real estate brokers (also known as E&O insurance) helps cover legal costs when someone sues you due to professional negligence in your work as a real estate broker. E&O coverage should be an absolute requirement of any large brokerage firm with multiple agents or offices that needs coverage.
Errors and Omissions Insurance for Real Estate Brokers is designed to protect both you and your clients. While costs vary based on state laws, premiums for this form of protection typically far outweigh hiring an attorney to defend you in court proceedings. It can be purchased as standalone coverage or combined with general liability, workers compensation or commercial auto policies for added peace of mind.
Errors and omissions policies are often utilized by real estate brokers, but can also benefit any professional that provides advice and recommendations to their clients – this could include financial advisors, real estate investors, insurance agents and mortgage brokers. Such policies tend to be offered more commonly for these specific professions due to dealing with large sums of money and making crucial decisions on behalf of clients.
Errors and Omissions Insurance provides protection from such costly errors in real estate agents’ duties to inform clients about foundation problems which could cost thousands to fix, or failing to submit paperwork on time to lenders causing delays in sales transactions. No matter the situation, errors and Omissions coverage provides coverage against legal action filed due to these mistakes.
Most states mandate real estate professionals carry this insurance in order to be licensed, while freelancers may find it useful due to less resources to fund an attorney should a claim arise against them.
Errors and Omissions Insurance for Real Estate Brokers
When purchasing errors and omissions insurance, its cost will depend on your line of work and business history, risk level considerations and policy limits chosen as well as any comparison between providers’ costs since costs can differ substantially between insurers.
Victor provides competitive errors and omissions insurance rates to real estate professionals at competitive rates. To learn more, reach out to one of our representatives or request an online quote now – NAR members can even take advantage of special member pricing!