Just as physicians require malpractice coverage, real estate professionals also need errors and omissions (E&O) coverage. This form of business insurance protects you in case a client alleges your advice was either inaccurate or missing altogether, leading to financial harm or loss for themselves or their investment portfolios. Furthermore, E&O coverage pays legal fees and damages associated with an unfounded claim no matter who’s at fault – you could find yourself facing legal bills regardless.
E&O insurance is essential for real estate professionals such as brokers, agents, and appraisers. Often packaged together with general liability policies to provide complete protection in any eventuality, E&O is especially advantageous to freelance brokers who lack the support of a larger brokerage firm in case an expensive lawsuit is brought against them alone.
Real estate can be an unpredictable industry, with mistakes happening even to the most diligent real estate professionals. A single mistake could lead to a costly lawsuit that threatens both your livelihood and reputation if any errors arise; E&O insurance provides financial security so you can focus on what truly matters in your career.
Based on your industry and size of brokerage, there is an E&O policy option tailored specifically for your industry and brokerage. Deductible and other features may impact cost; however experience and no claims history typically qualify you for reduced premiums.
Some states mandate errors and omissions insurance for real estate brokers, though it’s also strongly suggested for all agents and brokers. Many brokerages include it with your monthly desk fee while others require you to purchase it separately.
Errors and omissions insurance for real estate is typically quite cost-effective when compared with potential costs associated with client lawsuits. A standard policy covers damages, legal fees and judgments up to your coverage limit – making E&O insurance an inexpensive solution that gives peace of mind and financial stability for real estate practitioners.
How Much Does NEXT’s E&O Insurance for Real Estate Cost? At NEXT, we provide customized E&O policies tailored specifically for real estate brokerages; most of our clients typically pay between $25 to $75 monthly depending on factors like brokerage size, industry sector, claim history and premium amount – the riskier your business, the higher its premium may be.
An accurate quote can only be determined with an in-depth consultation, where we review your specific business needs and coverage requirements to find you the perfect policy. Get started right away – fill out our quick application today to start exploring!