Real estate agents make mistakes more frequently than you’d think; professional liability coverage (E&O insurance) serves as an essential form of risk mitigation for real estate professionals, although not mandatory in all states. E&O acts as a defense against unexpected legal challenges or financial losses stemming from errors or negligence during business activities, protecting professionals against legal challenges as well as potential financial losses that might ensue from these missteps.
An E&O policy typically covers legal expenses related to allegations of professional negligence – including lawyer fees, court costs, settlement or judgment awards and administrative fees associated with defending them. Such expenses can quickly accumulate when faced with large verdicts or settlement awards.
Errors and omissions can have severe repercussions for your business, from minor errors to catastrophic ones. At NEXT Insurance, we offer real estate E&O policies with customizable limits to suit the unique needs of our customers – protecting you against claims that could tarnish your reputation and ruining it altogether.
E&O insurance policies can provide residential and commercial real estate brokers and agents, escrow, mortgage and title services companies, escrow managers and title services companies with comprehensive protection that includes errors and omissions liability coverage as well as general liability, commercial auto and property/contents coverage for real estate transactions across all levels. Some policies offer bundles that combine all these products for easy business insurance management.
Finding an E&O insurance policy tailored specifically for real estate and other property-related businesses is essential to their success. While there are various providers who offer generic policies, none can meet the unique risks you face as a real estate or other property-related business owner. At NEXT Insurance we offer tailored real estate E&O coverage that allows you to focus on serving clients while expanding your business without worry or stress.
Real Estate E&O Claims
Being in real estate can be dangerously unforgiving – even for experienced agents. For example, it is easy to make mistakes as an agent. Assume you advise a client to enter an unsafe attic where they accidentally fall through a floorboard – this may lead to an E&O claim, since you were unaware of its condition and should have advised against entering.
Common claims against real estate professionals include mishandling lease agreements, failing to inform clients about relevant details, or not concluding all aspects of transactions in a timely fashion – which may lead to lawsuits that not only damage your reputation but may cost your business as well. Therefore having adequate real estate E&O insurance protection is of utmost importance.
Errors and omissions occur frequently in business, costing it dearly in terms of both time and money. But there are steps you can take to reduce the likelihood of claims against your firm, such as maintaining high professional standards, staying up-to-date on real estate trends, and always maintaining accurate records.