Even the most diligent real estate agents may make errors that have serious financial repercussions, from missed disclosures to mishandled property negotiations resulting in legal actions for professional negligence or lawsuits. Therefore, errors and omissions insurance, or E&O for real estate professionals is so vitally important. Errors and omissions occur regularly within this industry; thus it is vitally important that they have sufficient coverage in place in order to safeguard both their careers and businesses against risks they might encounter while conducting business activities. In this article we explore what E&O insurance is and how it can help real estate professionals mitigate risk in their business operations.
What Is E&O Insurance for Real Estate? No matter if you work independently as a real estate agent or for a larger franchise/brokerage firm, making errors that lead to lawsuits will inevitably happen at some point in your career. Errors and omissions insurance offers affordable and necessary protection when working with litigious clients; such policies cover legal fees, court costs and judgements awarded against your professional services in case someone files suit against them; much like medical malpractice policies cover doctors.
Assuming you’re working on the sale of residential real estate and forget to disclose a foundation defect that would cost the client thousands to repair, this could give rise to a claim for negligence against your firm. By having an E&O policy in place, this liability protection allows you to focus on serving your clients.
E&O insurance isn’t just essential for real estate agents and brokers – in some states it’s also required. Nebraska requires all real estate agents and brokers to carry a minimum of $50,000 worth of E&O coverage under their Real Estate Commission Group Plan from an insurer with qualified E&O insurance providers.
While many agents and brokers can secure an E&O policy at an affordable cost, some firms don’t provide it as an option. Before choosing an E&O policy for your real estate business needs, make sure that the costs and coverage are considered carefully to find one with optimal features that meets both their business requirements and your individual preferences.
Next Insurance offers real estate agents an easy and streamlined experience to quickly obtain quality E&O coverage at a great value. In addition, Next also specializes in general liability and workers’ compensation policies to provide real estate firms with comprehensive risk management tools for success in business.
As an affiliate of the National Association of REALTORS(r), Victor provides National Association of REALTORS members with state-of-the-art E&O insurance at exclusive members-only pricing. Reach out to us now to discover how you can secure quality coverage for your real estate business – no matter what level you currently operate at. Our specialists are ready and waiting to answer any of your queries, provide quotes quickly and provide answers right away – simply click below or call 800-822-5253!