Real estate agents are trusted with leading clients through high-value and complex property transactions, so it is of utmost importance that they take extra precaution to avoid making errors that could harm their reputation and cost money. Unfortunately, even professionals can make errors; when this occurs it is essential that an effective errors and omissions insurance policy provides coverage.
Errors and omissions insurance (E&O insurance) provides real estate brokers, agents and appraisers with protection against negligence claims that could arise due to changing regulatory environments and litigation risks. Errors & Omissions coverage should be an essential coverage component for any real estate business that wants to thrive today’s global business climate.
Real estate errors and omissions policies offer real estate professionals who primarily deal with repeat or referral clients an invaluable protection: prior acts coverage. This feature makes the policy ideal.
An error and omissions insurance policy for real estate agents of all experience levels and sizes of agencies is vital, often required by brokers or firms before an agent can work with them.
If an agent makes an error that costs their client money or leads to the cancellation of a sale, their client can sue for damages and lost revenue. Without an error and omissions insurance policy in place, agents could find themselves paying legal fees out of pocket; an effective error and omissions insurance policy can cover those expenses while protecting their reputation and protecting the agent.
Many brokerage firms provide agents with group errors and omissions insurance policies through the firm itself, while this may provide adequate protection, they may have gaps. For instance, these policies usually only offer prior acts coverage up until when an agent joined their brokerage; should any claims arise within that tenure of coverage they must purchase an additional tail policy or secure individual errors and omissions coverage to remain protected.
Errors and Omissions insurance provides greater coverage flexibility and control, making it the optimal solution for independent real estate brokers who wish to cover all their clients, rather than just those working under larger firms. You may even add extras such as phone access to an attorney provided by your insurer should client disputes arise that threaten to become lawsuits. So why wait – get a quote now to find out what a comprehensive E&O insurance policy could cost your real estate business!