If you work in real estate or insurance services and provide client services to others, errors and omissions insurance can provide vital protection from financial loss should a client sue due to mistakes or oversights that damage their business or cause them financial loss. Also referred to as E&O or professional liability insurance policies, errors and omissions insurance is usually required of insurance agents; while it’s recommended for real estate firms, appraisers, real estate agents etc.
Errors and omissions insurance texas real estate provides your business with protection from lawsuits filed by customers due to any mistakes or oversight on your part, covering legal fees and settlements that result. It is an invaluable investment that allows you to focus on serving customers instead of worrying about legal ramifications.
Imagine running a successful real estate firm with associates working tirelessly to meet customer demand. One day, when one of your customers needs advice on purchasing a home, one of your associates gives wrong advice which results in them missing out on a great opportunity and losing funds and stress due to this oversight. Without errors and omissions insurance Texas you would likely incur legal costs yourself which you would then need to cover from personal funds.
Do You Require Error and Omission Insurance for Your Business? In some states, Error and Omissions (E&O) coverage is actually mandatory for certain industries and professions – insurance professionals, real estate agents and appraisers all benefit from having E&O policies to protect them in case a client sues them due to service errors they provided; brokers typically require E&O insurance from new agents before signing them up with them as brokers.
E&O insurance policies can be relatively cheap and easy to get, providing peace of mind when working alone or running your own practice. Furthermore, you could even receive coverage for past mistakes with an E&O policy retroactive to when it was purchased.
However, errors and omissions insurance doesn’t cover you for property damage you cause; for this, general liability coverage should also be acquired.
Errors and omissions insurance can be an invaluable asset for any business, and is required in certain states for certain industries. Insurance professionals, real estate agents and appraisers all require this form of protection against legal disputes resulting from service errors or oversights; brokers often include it in their monthly desk fee while some agencies even package it with other policies as a package deal. Our team at FirmSecured can help your find the appropriate policy – contact us now to find out more about our errors and omissions insurance solutions!