Real estate can be an emotional and stressful business for your clients, and your responsibility as an associate lies with providing accurate information and advice regarding properties they’re considering. Even the best real estate associates sometimes make errors that could cost clients their business; when that occurs, e and o real estate insurance provides essential legal support if someone sues over your mistake. Also known as professional liability coverage, this coverage has been tailored specifically for real estate professionals such as brokers, agents, appraisers and property managers.
People often mistake e and o real estate insurance as being exclusive to residential brokers; however, this type of policy provides comprehensive protection to anyone working in the real estate industry – mortgage brokers, commercial property managers, escrow agents and title companies all included! Furthermore, it can even be combined with general liability to offer even greater peace of mind.
As a real estate broker, the risks of claims related to your professional work are numerous and present themselves in various forms. Be it failing to disclose foundation issues or mishandling an escrow properly, mistakes happen – even small errors could lead to lawsuits which not only cost money but could damage both reputation and finances significantly. Thus it is vitally important for real estate professionals to have errors and omissions insurance in their portfolio.
When reviewing a policy, it’s important to evaluate its limits and coverages for defense costs and indemnity. Furthermore, you should review any exclusions which may exist and apply in certain instances such as fraud claims, bodily injuries claims or environmental issues that require legal protections. Some policies are only valid in certain states, thus necessitating purchase of surety bonds in order to comply with state regulations.
Real estate error and omissions policies tend to be “claims-made”, covering only claims filed during their term of coverage. Some policies may also feature retroactive coverage for any work completed prior to starting their policy term. When considering your premium options with your insurer, take note of any possible discounts they might provide you.
To find a real estate errors and omissions insurance policy that fits your needs, speak with an expert. They can assist with determining the appropriate amount of coverage for your business, evaluate potential exclusions and negotiate an increased limit with an additional premium payment. Furthermore, they will assist with understanding state compliance requirements relevant to your line of work so that you know your policy will work when needed most. To get started today fill out our simple online application and receive quotes within 24 hours – once covered you can rest easy knowing your business is protected from potential errors!