Real estate is one of the world’s biggest markets, worth an estimated total of over $110 trillion. But as a broker in this field, litigation may become costly if an oversight or error arises in your work; errors and omissions (E&O) insurance offers protection from this risk by covering legal disputes over work mistakes or oversights that might arise; it typically bundles together with general liability and commercial auto policies to provide comprehensive protection.
As a real estate agent, appraiser, or owner of a firm or franchise, errors are commonplace in your line of work. Mistakes range from missing an inspection appointment to forgetting to include necessary information on listings. Mistakes like these can have costly repercussions for clients as well as impacting your profits significantly.
Errors and omissions insurance for real estate brokers is of vital importance; in some states it’s even required legally! Not only can it protect against legal liabilities associated with errors and omissions claims, but it can also serve to safeguard their professional image and preserve their credibility as professionals.
How Errors and Omissions Insurance for Real Estate Brokers Works
Real estate agents and brokers often face lawsuits due to errors or oversights at work. Therefore, many companies require E&O insurance for agents and brokers. While each E&O policy varies in terms of coverage options available to them, it’s wise to review your specific options thoroughly.
Mistakes that lead to lawsuits against real estate agents and brokers include failing to adhere to professional standards, providing inaccurate reports or documents, or leaving out crucial details from property listings. Sometimes these errors can have devastating effects on clients’ finances or even hinder the sale of their home.
Legal disputes between real estate agents and brokers often stem from misinterpreting information provided by clients or failing to disclose known issues with a property. If an agent failed to mention that there was waste under a property that could influence buyers’ decision, for instance, buyers can sue them for damages.
Victor offers cutting-edge errors and omissions insurance at special members-only pricing for real-estate brokers. Our team can tailor a policy specifically tailored to the unique needs of your brokerage, so don’t wait – contact us now and learn more. If you are an NAR member, quotes and binding can even be completed online within minutes! We look forward to collaborating with you; click below to start speaking to our E&O specialists now.