Real estate is an inherently skilled field that involves selling and managing properties for profit. No matter if you work solo or with a large brokerage firm, mistakes made when working with clients could lead to lawsuits and financial losses for both parties involved. Errors and Omissions Insurance for Real Estate is essential in protecting your company against risks. Errors & Omissions (E&O) covers your company against legal actions brought against it from clients dissatisfied with your work or services, typically including lawyer fees, court costs and settlement expenses should negligence or errors in performance be charged against it as part of E&O coverage for real estate professionals.
Most E&O policies also cover any damages you must pay if your claim is successful, though there may be exclusions to review before signing on; for instance, damages caused by staff while showing clients around properties typically aren’t covered under E&O policies, so an umbrella general liability policy might provide better coverage.
No matter the efforts of your employees, mistakes still happen during business operations that could leave you open to lawsuit. This could include lack of disclosure, delays in providing legal documents to clients or giving bad advice about property purchases and sales. Even successful litigation against these types of claims can be extremely expensive for you and your business; so having an E&O plan that protects both parties involved is vitally important to safeguarding both financially.
Real estate errors and omissions insurance costs depend on several factors, including company size, employee count and past E&O history. Therefore, it’s essential that you speak with a broker who can conduct an in-depth risk analysis to understand coverage options and pricing. It may also be worthwhile comparing various real estate E&O programs before making your selection based on factors like price, customer service quality and carrier/broker reputation when making this important decision.
E&O coverage for real estate businesses can be an excellent investment. It shows potential customers that you are committed to the success of your business and will do whatever it takes to protect clients.
EEO insurance real estate is an essential tool for any professional who engages with the public in any capacity, as it reduces litigation risks and ensures your company can operate unburdened from any potential financial consequences for malpractice allegations. Furthermore, having this coverage shows your customers that you’re trustworthy and will take their case to trial if needed.