Real estate broker errors and omissions insurance (E&O) provides real estate professionals with protection against financial losses caused by mistakes, oversights or negligence during property transactions. Even the most diligent professionals can encounter legal disputes resulting in errors and omissions claims being filed; as they’re commonplace within real estate industry it is of crucial importance for real estate professionals to have appropriate coverage in place.
While state laws and licensing procedures may not mandate E&O coverage, all real estate brokers are strongly recommended to carry it as protection against professional liability claims. Many clients also require E&O coverage prior to working with any real estate agent or brokerage firm.
Errors and Omissions Insurance for Real Estate can often cost much less than defending against legal proceedings or compensating clients, so wise real estate agents and brokerage firms carry it for protection.
Even the most diligent real estate agents or brokers may make errors during business. A broker could misrepresent the amount of acreage included with a property, forget to sign an important document during closing, fail to disclose a known defect that prevents financing or result in pollutant issues on a new purchase, etc.
Real estate broker E&O insurance can protect against mistakes made by agents, but does not cover property damage caused by customer actions. General liability and commercial auto policies typically provide this kind of coverage.
Note that certain states may mandate errors and omissions insurance for realty brokers as a prerequisite of licensure or registration, or in case you work at a licensed realty franchise or brokerage firm, they may mandate you purchase their group policy.
At OREP, we understand the unique risks of real estate industry and can assist you with finding an appropriate real estate error and omissions insurance policy to suit your needs. With access to over 30 leading providers and quick quote access, we can quickly acquire quotes for you quickly – in most cases approval occurs on the same day and coverage can be purchased online! For more information or a quote please reach out directly or complete the form on this page – we look forward to speaking to you!