Real estate transactions involve many parties. When this complexity leads to errors or omissions occurring, mistakes can cost money if someone thinks you were at fault; if a buyer believes you caused their loss due to negligence they can file suit against you. While you cannot control what others do, real estate e&o insurance can protect yourself in such situations.

Errors and omissions policies exist to provide you with financial protection in the event that someone sues you over something you did or failed to do as a real estate agent. They typically cover legal defense fees and any settlement up to an agreed limit as well as corrective expenses related to any mistakes you’ve made; some also offer retroactive coverage so even if either yourself or the agency you work for cancel their coverage, all past transactions remain covered even if future policies cancel.

Most real estate e&o policies contain exclusions that limit what will be covered, making it essential to read through all the fine print thoroughly. Common exclusions are crimes (like dishonest actions), bodily harm or death, discrimination laws violated by civil causes ( such as discrimination). For instance, leaving lockboxes unlocked; violating CAN-SPAM Act; or cold calling which breaches Telephone Consumer Protection Act may all fall outside coverage.

A good E&O policy typically includes a deductible and per occurrence limits – or maximum amounts the policy will pay per claim – along with an aggregate limit. Sometimes insurance companies also pay court costs and professional fees in cases that go beyond what’s covered by E&O policies – saving you significant out-of-pocket expenses.

PBI Group can guide you through the process of selecting an E&O policy tailored to meet your unique requirements, with over 50k real estate E&O policies written for agents and brokers across the United States alone! Contact us or complete our online form now for a quote.