Real estate can be an arduous, high-stakes industry. From high value transactions, complex processes, emotionally invested clients and multiple moving parts – mistakes can be expensive. Professional liability insurance for real estate agents (also referred to as Errors and Omissions insurance or E&O insurance) provides valuable protection when mistakes do happen – helping mitigate their impact financially when errors do happen.

Real estate professionals of all skill levels make mistakes, and the costs associated with them can be devastating for a business. Professional liability coverage provides essential protection in case clients file suit over miscommunications or errors made during transactions; in addition, E&O policies for real estate professionals cover legal costs associated with defending against these claims as well as settlements and judgments incurred in defending against these claims.

Many states mandate errors and omissions insurance for real estate professionals. Banks and lending institutions also frequently require this coverage before entering business relationships with real estate professionals. And it is always advisable to have this protection regardless of your working arrangement, be it alone or as part of a broker/franchise organization.

Although some errors and omissions claims against real estate agents may seem frivolous or frivolous, many are valid. And the costs associated with defending yourself against these lawsuits can add up quickly even for frivolous ones; making a quality e&o policy an economical investment for your business.

Errors and omissions claims can stem from many causes, including failing to disclose key property information, misrepresenting information, or neglectful performance of duties. Such claims may cause damages for either clients or brokerages alike. Thankfully, E&O insurance policies cover the costs of defending against these allegations as well as potentially awarding settlements or judgments awarded by courts.

What are common real estate errors and omissions?

Real estate errors and omissions claims can arise for various reasons, with common ones including listing properties with incorrect square footage, failing to complete necessary paperwork for closing, providing inaccurate advice or failing to file reports of error on time. Defensive these claims can become expensive; clients might believe something was done intentionally.

To reduce the chances of making errors, it’s essential to abide by all necessary guidelines when creating property listings or providing advice to clients. You should also carefully read any contracts involved so all parties understand exactly what their responsibilities are – when in doubt seek legal advice before signing anything!