Real estate errors & omissions insurance (REEOI) provides agents, brokers and agencies in the real estate industry with professional liability protection against legal costs associated with claims of professional mistakes or negligence in their work. REEOI provides peace of mind by protecting against unexpected events while helping reduce risks to businesses.
Real estate is an extremely complex field with multiple factors to take into account, making even experienced real estate professionals vulnerable to making errors that could prove costly for their clients. When working with large amounts of money and various parties involved, even minor oversights can quickly escalate into major lawsuits that threaten to put a company financially at risk; without adequate errors & omissions insurance in place, an unhappy client or regulatory process could easily bring financial ruin to its operation.
Errors & Omissions insurance is essential for real estate professionals because of their responsibility in providing detailed information to clients as well as managing complex property rentals, sales, and purchases that involve multiple parties and steps that must be completed within an agreed-upon time frame. Any mishandling or oversight could have serious repercussions for their clients and should always be addressed.
Real estate errors & omissions insurance claims frequently stem from inaccurate advice given by brokers or agents to clients, for example informing them to enter bids that far exceed market value; should this happen, their clients could sue for compensation as the land may have been purchased at too great an expense due to improper advice provided.
E&O insurance for real estate also protects against mistakes that arise during the marketing of properties, such as brochures, flyers, postcards and social media posts. Mistakes can happen anywhere along the marketing process and even small errors can quickly become big issues when publicized.
Real estate errors & omissions insurance offers another crucial benefit, covering expenses related to claims from outside of North America. This feature can be particularly helpful for international real estate professionals dealing with different regulations and language barriers when working with international clients.
Errors & Omissions Insurance for Real Estate isn’t required in all states, but it should still be an essential safeguard for any company dealing in property sales. Lawsuits for even one claim can be expensive to defend; errors & Omissions policies from NEXT typically range between $25-75 monthly depending on your location and business size; get a quote today to find out how cost-effective errors & Omissions policies could be for your real estate firm!