Real estate broker errors and omissions insurance is one of the most essential policies you can purchase for your business, protecting you against lawsuits that could otherwise ruin it. Although every small business makes mistakes, errors and omissions insurance provides critical protection from being used against you in legal disputes by clients accusing of misconduct and filing legal disputes against them. Whether working as an independent contractor or with an established real estate firm, errors and omissions coverage offers you protection from client accusations as well as possible lawsuits from legal disputes over previous errors committed.
Real estate professionals face many unique challenges when fulfilling their profession of real estate agent or broker, from providing detailed information to clients to handling complex rentals, sales and purchases of properties; managing mortgage details to oversee complex financing schemes – mistakes often arise which have serious financial repercussions for all involved.
Errors and omissions that occur in real estate transactions often cannot be blamed solely on agents and brokers; rather they’re usually caused by the complex nature of real estate deals themselves. Many insurance companies provide errors and omissions insurance to cover these blunders; it is essential for agents and brokers to review the terms of their E&O policy closely so as to protect themselves against claims they might face in practice.
One of the Common Errors That Lead to Claims
Real estate agents and brokers may be held liable for negligence, fraud, misrepresentation or negligent supervision. A common claim made against real estate agents and brokers stems from failure to disclose issues with properties for sale – this can include failing to report structural problems or the presence of toxic waste on them.
Even the most diligent real estate professional faces the possibility of receiving incorrect information from sellers or other parties and making mistakes as a result. For instance, you might incorrectly assume a property connects to sewer when in fact it only uses a septic tank; an E&O policy typically covers this type of error as long as you can provide evidence it was an honest mistake.
Errors and omissions insurance for real estate agents and brokers isn’t mandatory in New York, but is often stipulated by contracts with clients or franchises/brokerage firms as a requirement of contract terms or franchise requirements. Along with errors and omissions coverage, New York agents/brokers should carry general liability and workers’ compensation policies as well. For more information about errors and omissions coverage for New York real estate brokers/agents contact an experienced agent from PBI Group today who will guide you through every step of this process while selecting appropriate coverage that helps safeguard both business operations against costly errors/omissions events while understanding all specific restrictions/exclusions within your E&O policy coverage limits/exclusions/limitations/exclusions within your E&O policy coverage terms/terms/exclusions clauses/terms of policy coverage/combined coverage limitations/exclusions of policies available pertaining to your situation/business needs/situation