Errors and omissions insurance for real estate brokers is one of the most critical components of their career as real estate professionals. It provides financial security in case of client disagreement, while protecting against reputation damage that might otherwise arise from errors and omissions that happen routinely within this field. Protect yourself financially against these potential issues so you’ll remain confident when handling client inquiries or disputes in future!
Errors and Omissions (E&O) insurance, also referred to as professional liability or malpractice coverage, provides professionals with protection from lawsuits that arise out of errors, mistakes or negligence in their professional duties. Due to its potentially high costs of defense against such claims, it’s wiser to prepare yourself against anything that may come your way by having E&O coverage in place.
E&O insurance is usually included as part of a larger business insurance package that also includes general liability and commercial auto coverage; however, some independent brokers purchase it separately. Although not required in all states, E&O coverage should be strongly considered by any real estate professional who wants to avoid costly mistakes in their work.
Errors in real estate transactions are common and even for experienced professionals; even so, errors do occasionally happen that require legal recourse to rectify. A broker might overlook foundation issues on a property they represent for sale or forget to submit important paperwork on behalf of clients, potentially costing thousands in financial loss and months of stress for clients; filing suit could ensue against agents/brokers unless their errors and omissions policy protects them in such an instance and pays any necessary compensation to clients in a legal battle situation.
What Doesn’t Real Estate Errors & Omissions Cover? mes A real estate errors and omissions policy does not cover damage to customer property or theft of business assets, fraud or dishonesty in transactions which constitute criminal acts, or work performed before its effective date (effective date being defined as when your E&O policy took effect).
NEXT Insurance is an excellent choice for independent real estate professionals seeking errors and omissions insurance policies, providing a seamless user-friendly platform tailored specifically for small businesses and providing quotes quickly online. They specialize in other forms of coverage like workers compensation and general liability policies as well – giving you access to discounted bundle rates!
Real estate brokers seeking E&O insurance should shop around to find the most economical policy. On average, monthly premiums run between $55-$65 depending on risk profile and policy selection; to get an exact cost quote contact NEXT Insurance today; they specialize in small business insurance solutions and can help select an appropriate policy to address specific risks.