As a real estate professional, you interact with many clients and properties every day, which means mistakes are bound to occur even with your best of intentions. That is why errors and omissions (E&O) coverage for real estate professionals is vital – this type of professional liability coverage protects your business in case a client sues over mistakes or negligence on your part.
Real estate E&O insurance should be an essential component of your real estate professional life, whether you operate as an independent agent, broker, large firm employee, solo operator, or part of an organization with multiple agents and brokers. A single claim could drive you out of business, while multiple ones could cost your license or ruin your reputation as a real estate professional – not to mention financial hardship that would ensue from such claims.
What Is Real Estate E&O Insurance Covered Byschutzerklarung Errors and Omissions Insurance for Real Estate Professionals provides cover for legal expenses associated with any lawsuit alleging professional negligence by either misrepresenting information, failing to act on it as required, omitting information that should have been disclosed, breach of fiduciary duties or settlement or judgment costs.
Real estate agents or property management companies could face lawsuits for failing to inform prospective buyers about potential structural issues with the home that could deter a sale, and for providing inaccurate lender information on behalf of clients. Other forms of E&O policies for real estate may include general liability coverage and surety bonds.
Cost of Real Estate Error and Omission (E&O) Insurance may depend on several variables such as your chosen types and limits of coverage, brokerage size/industry, industry sector exposures, deductible amount and risk assessment; generally higher coverage limits result in more costly premiums.
Get an accurate quote for real estate E&O by speaking with an insurance agent or broker. They can conduct a risk analysis and give an estimated cost based on your particular circumstances, while helping identify strategies to lower exposures and insurance costs; such as lowering deductibles or adding property management liability coverage that may reduce premium costs.