Real estate brokerage and agent careers can be complex environments with many potential pitfalls for clients. Transactions are both expensive and stressful processes for them, which makes accurate information crucial in closing deals successfully. Unfortunately, mistakes do happen and if any cause significant monetary or emotional loss for their client they could file suit against your business; for this reason it’s vital for real estate brokers and agents to secure themselves with E&O insurance as a safeguard against potential legal claims against themselves or their business.
Errors & Omissions Insurance for Real Estate
Errors and Omissions (E&O) coverage provides real estate professionals with professional liability protection against legal fees, damages and judgments associated with client lawsuits against them. E&O coverage also helps cover lost profits and any associated expenses should a mistake cause financial loss for your client.
Real estate professionals should strongly consider carrying Errors & Omissions insurance (E&O). Although E&O coverage isn’t required by state regulations, E&O policies provide protection from lawsuits related to fiduciary duties being neglected, negligence claims being filed, inaccurate disclosures being provided by you and bad advice given. Depending on where they’re purchased from some policies may even provide coverage against misrepresentation, breach of contract, unfair competition discrimination claims as well as similar types of legal actions that arise out.
E&O Insurance for Real Estate Professionals covers the costs associated with litigation and damages associated with client claims made against you, as well as repairs required after mistakes you made during work are discovered. It can be purchased either separately or as part of an all-encompassing package including general liability and commercial auto policies to provide greater business protection.
NAR’s Risk Management Committee has developed two documents to assist real estate professionals better understand their E&O coverage. The first document, an E&O Policy Summary, covers key points such as who is covered; types of claims that may be filed; deductibles; office policies for insurance issues; and strategies for covering costs associated with E&O policies. A tri-fold brochure specifically targeting real estate agents and brokers covers similar points.
NEXT Insurance can assist your real estate business with E&O insurance for an affordable premium, or we also offer workers’ compensation coverage to cover medical bills and lost wages should an employee become injured on the job. Reach out today and start building a policy tailored to you – we look forward to speaking with you!