As a real estate agent, broker or other property industry professional you are exposed to large sums of money and may come into contact with numerous outside parties – making your work an extremely high risk environment where mistakes could easily happen when stakes are so high. Errors & Omissions Insurance (E&O) coverage provides one way for protecting against such mishaps in business operations.
E&O policies typically cover legal costs associated with defending claims up to their specified limits, as well as damages awarded from court or settlement awards, up to those specified in your policy limit. Many real estate E&O policies also provide cyber liability coverage which has become increasingly necessary since agents and brokers are constantly being targeted by scams such as phishing scams, viruses, and wire fraud schemes.
Real estate agent E&O insurance premiums depend on various factors, including brokerage size, number of transactions and types of properties sold or listed for sale or listing. Furthermore, desired coverage level and deductible also play an integral part. Usually a higher level of protection reduces premium costs as this helps mitigate risks.
Possessing a Comprehensive E&O policy is crucial to protecting both your career and business against claims against it. E&O insurance should form part of any real estate business’s overall risk management strategy alongside general liability policies.
An E&O policy provides coverage against claims brought against real estate professionals for misrepresentation, negligence or breach of fiduciary duty. Furthermore, this coverage extends to any alleged violations of RESPA (Real Estate Settlement Procedures Act), a federal regulation which governs loan documents and disclosures to homebuyers.
Real estate E&O insurance can be purchased both for individuals and for real estate firms. When purchased for firms, a policy will usually provide coverage for work performed by all employees within their scope of activities – this may include independent contractors, subcontractors and employees that don’t technically belong to the firm but perform work for it nonetheless – though it will not extend coverage when employees perform services for another firm or independently.
Real estate agents of all types may find themselves vulnerable to errors and omissions claims, making E&O insurance coverage essential. Contact PBI Group’s E&O insurance experts now to discuss your real estate E&O coverage needs and select an effective policy suited to your unique business and budget needs. Since 1986 we’ve written over 50,000 real estate E&O policies for property professionals across the nation – let us be your E&O expert so you can focus on closing deals.