No matter whether Florida requires real estate agents to carry errors and omissions insurance (E&O), an accusation of negligence can place your career in jeopardy. A single lawsuit could erase years of commission earnings, devastate savings accounts and irreparably damage reputations – leaving only legal fees and settlement costs as the bill that needs paying for yourself without E&O coverage in Florida. With adequate protection in place you can protect both financial stability and professional standing.
E&O insurance is part of the standard business owners policy package and covers mistakes, oversights and professional negligence but not intentional wrongdoing such as fraud or criminal activity. Limits and exclusions will differ by carrier; however they typically cover most claims.
At times in an ever-evolving real estate market, it can be easy for small mistakes to snowball into large problems. From misprints in home listings to missed details during property inspections, real estate professionals often make unintentional errors that could lead to costly disputes and litigation. Furthermore, fiduciary duties that require them to act in their client’s best interest while protecting confidential data may trigger claims for negligence which leave them on the hook for expensive legal costs and settlements.
Errors and omissions insurance is an affordable way to safeguard your career in an extremely competitive industry. The price will depend on factors like the nature of your business, coverage requirements and claims history – for instance, newer agents with past claims history may pay more.
Errors and Omissions insurance has its place across industries, but especially accountants and financial professionals can reap significant rewards from purchasing this policy. Small mistakes can cost clients thousands of dollars; errors and Omissions coverage should therefore be part of a comprehensive business insurance strategy; in fact, licensing or regulatory bodies often mandate it. Depending on your industry and specific circumstances, an E&O policy may complement other coverages like general liability and commercial property policies.