Real estate transactions can be complex, and when clients become emotionally attached they can lead to miscommunication or outright mistakes that lead to litigation it can be financially devastating for real estate brokers. Errors and Omissions insurance, more commonly referred to as E&O coverage helps cover legal expenses associated with these claims.
E&O insurance is a type of professional liability coverage available to professionals providing professional services, such as financial advisors, insurance brokers and agents, or real estate professionals. Like malpractice coverage for medical practitioners, E&O plans provide coverage against lawsuits filed against covered professionals in case any judgments are awarded against them.
Real estate agents and brokers in certain states must purchase E&O insurance, while others opt to do so voluntarily. E&O covers everything from not disclosing pertinent information about a property to failing to complete inspections or tasks related to sales – plus, any monetary settlements awarded as well.
Ergo, Real estate professionals should recognize that purchasing E&O coverage is one of the best ways they can safeguard themselves and their businesses – as well as an inexpensive way to give themselves and their clients peace of mind.
As with any purchase of insurance policies, purchasing policies requires working with an experienced expert who can guide the process and ensure your coverage fulfills state requirements. They can review your specific business to recommend coverage amounts which meet all state guidelines as well as explain any limits or exclusions of their policy terms.
Real estate agents frequently make errors during the listing or closing processes that lead to disputes with clients, or can cost dearly if omitted information such as zoning regulations or hazardous waste dumps have an effect on final transactions.
E&O can cover damage caused by events and events held on a property that aren’t covered by homeowner’s policies, such as an open house. Claims made coverage applies when a claim is reported versus prior policies which might cover it.
Real estate professionals have many E&O insurance options available to them, making it crucial that they consult an experienced professional to assess their needs and recommend appropriate coverage. OREP is here to assist with this process and can guide you through all available policies so your policy fits properly. Get more information by reaching out today or filling out our online form requesting a quote – over 20 years’ experience serving real estate professionals gives us the assurance of being protected should a claim come against them.