As a real estate professional, your clients depend on you for advice and information. However, as buying or selling real estate can often be an emotionally-charged experience, mistakes can occur. When they do occur they can prove costly: legal disputes ensue over mistakes made during transactions; clients become dissatisfied; lawsuits threaten careers – errors can even be fatal!

Real estate business owners can take steps to reduce errors and omissions risk and protect their business’s reputation and bottom line from potential harm caused by errors and omissions by purchasing real estate agents e&o insurance – professional liability coverage which protects against client lawsuits alleging services were provided that fell below expectation.

Mistakes and oversights in real estate are more prevalent than you think, such as failing to disclose structural defects before closing on a sale, or failing to submit required documentation to lenders for loan approvals. Such mistakes can cost your clients financially as well as lead to costly legal action against your agency or brokerage.

An effective errors and omissions policy for real estate will cover your legal defense costs, settlement or judgment expenses and any additional expenses in the event of a claim being brought against your business. Real estate errors and omissions claims often allege misrepresentation, failure to disclose critical property information, negligence and even accusations of fraud – these costs should all be covered under an adequate policy.

Although you can take steps to minimize errors and omissions in real estate business, it’s important to remember that in an industry so fast-paced and high-value, mistakes will happen; after all, “to err is human”.