Errors and omissions insurance in real estate California is professional liability coverage that protects you from claims filed by clients due to errors or omissions in your work, legal fees, settlements and judgment awards as a result of these covered claims. It’s often required of real estate professionals and other businesses providing professional advice or services for a fee.
Errors in real estate transactions can range from failing to disclose foundation issues prior to sale to forgetting essential documents during loan approval process – seemingly minor errors that cost clients time, money or emotional anguish. Real estate agents and brokers are responsible for advising their clients through this stressful and complex process, which often leaves both parties overwhelmed and vulnerable; mistakes often occur and impact financial well-being negatively.
Some states mandate errors and omissions insurance for real estate agents and brokers before receiving their license; even if your state doesn’t, errors and omissions coverage should still be an essential component of your business, providing protection if someone sues for negligence, or claims your advice caused them financial damages or losses; similar to malpractice insurance for doctors.
E&O insurance policies can be among the most cost-effective coverages you can purchase for your business, making them one of the more economical policies available to you. When shopping around for coverage, be sure to review its details and costs closely in order to assess if they provide adequate protection. To do this easily and compare prices across insurers, get quotes from multiple insurers such as Next Insurance; which offer fast online quote processes tailored specifically for real estate error and omissions insurance and can tailor policies specifically tailored for each business need.
Errors and Omissions insurance should be an essential component of real estate professionals’ policies; however, general liability coverage is also advised for their business. This type of protection can cover repairs or medical costs incurred from injuries on your property as well as damage caused to third-party property and equipment.
Errors and omissions by property managers differ slightly from those made against real estate agents and brokers in that they often cover allegations of discrimination based on race, creed, age, national origin, religion, gender sexual orientation disability or marital status. Consider purchasing this type of insurance as it will protect you against costly civil rights lawsuits if a tenant files one against you and will also cover relocation costs should this become necessary. Property manager errors and omissions policies typically cover false arrest and imprisonment as well as legal expenses related to such arrest. Some policies also offer environmental incident coverage such as discovering undeclared fungi or bacteria on a property.