Errors and Omissions Insurance is essential if you work in real estate; mistakes will happen with clients, regulators and outside parties; these mistakes could have devastating repercussions.
Therefore, you should prepare for claims resulting from miscommunication, negligence or oversights which lead to property loss or financial harm for customers. Professional Liability policies generally cover legal fees incurred while defending such claims including attorney fees, court costs and settlement or judgment awards made against the claimant. Furthermore, many E&O policies provide coverage for damages that occur as a result of your actions at open houses or client-related events such as listing homes with structural defects for sale.
NEXT policies are tailored to fit the unique requirements of your profession, providing comprehensive protection from risks that you face in your industry. Most of our policyholders pay between $25 and $75 monthly for E&O coverage – much lower than what would typically be found with other providers.
Why Do I Need Errors & Omissions Insurance? No matter if it is mandatory in your state, errors and omissions insurance is essential for any real estate professional. Even experienced agents and brokers make mistakes that could have dire repercussions for their businesses if these mistakes go undetected.
One misstep may not seem like enough to cause an expensive lawsuit, but even one error or omissions claim can compromise both your reputation and livelihood if taken to court. Errors and omissions coverage is an ideal way to safeguard against these potential dangers and it’s an intelligent investment for anyone in real estate business.
Real estate professionals need E&O insurance for many reasons, the main one being state regulators and lenders who require it as part of doing business. Furthermore, having E&O coverage gives clients confidence in your service while some buyers or investors might require you to have E&O before entering a contract agreement with you.
As a real estate agent, broker or franchise/company owner, you are charged with providing comprehensive advice to clients on complex property rentals, sales and purchases – which means always being on top of things. However, human error is part of life; even the most seasoned agents make mistakes occasionally.
Real estate professionals deal with large sums of money, complex processes and outside parties; any misstep could have serious repercussions for both parties involved and therefore it’s essential that they have an insurance policy covering legal claims as errors and omissions insurance provides exactly this protection.