Brokers and agents in real estate know all too well the complexity and time-consuming nature of property transactions can be. With so many moving parts involved in property sales transactions and any misstep potentially leading to costly legal disputes, errors & omissions insurance (E&O), commonly referred to as professional liability coverage is invaluable.

E&O coverage should be an absolute requirement for real estate professionals of any experience level and qualification level, including those with extensive experience and credentials. Not only is E&O insurance required by certain states but it can protect you financially in case of litigation risk and help maintain a solid professional reputation.

E&O insurance is similar to other forms of professional liability coverage, but tailored specifically for real estate industry risks. This policy protects you against negligence or mistakes made while acting on behalf of clients during real estate transactions – for instance missing an essential piece of property information or failing to reveal potential issues with homes. Furthermore, E&O covers your defense costs should a lawsuit arise over your work.

Real estate agents and brokers often face E&O claims because they have access to large sums of money that must be managed according to stringent rules and regulations. But other professionals in the real estate field, including escrow officers, loan closers, notary publics and abstractors also need E&O insurance protection against liability risks.

While no one desires being sued for malpractice, it is a risk associated with every business. Even if the lawsuit proves baseless, it could cost your reputation irreparably – therefore being prepared should an issue arise is always wise.

Errors and omissions in real estate can range from minor paperwork mistakes to more serious problems that cost clients money on sales or investments. Legal fees associated with defending yourself against malpractice claims can become extremely costly; you might even need to compensate the client as part of any settlement agreement – which can significantly erode profits for your business. Errors and omissions insurance is designed to cover these expenses while keeping careers on track – learn more about its functionality, coverage features and costs today!