Are You an Estate and/or Occupancy Broker or Firm Owner in Real Estate? E&O insurance (Errors and Omissions Liability Coverage) should be an essential element of your portfolio as an agent, broker or franchise/firm owner engaged in helping people purchase or sell homes? Typically it is required by state licensing laws as it provides coverage against claims of negligence, misrepresentation and errors while performing services – it should also serve to safeguard individual assets against possible legal action against real estate professionals from clients and customers making allegations regarding negligence claims of negligence for negligence misrepresentations or errors made while performing services rendered during performance of services performed for clients/customers against claims made against real estate professionals from clients/customers making legal claims against them from clients/customers against their work being claimed against them by clients/customers alleging negligence misrepresentation or errors when performing services to them – E&O coverage should be considered important regardless – regardless – regardless – in order to protect personal assets against legal proceedings brought against them should something arise against them that might result.
Errors and Omissions Insurance
Also referred to as professional liability insurance, errors and omissions coverage is a type of business insurance designed to protect businesses against damages caused by mistakes or oversights in their operations. Commonly found within design, construction and real estate industries due to its coverage for issues across many areas; it can often prove more expensive due to higher limits and greater protection coverage.
Some states mandate real estate agents and brokers obtain E&O insurance as a condition of licensure or employment; additionally, many firms mandate this form of coverage as an employment requirement for their employees. While these requirements often follow state laws, they also recognize the fact that errors and omissions can have serious repercussions for a real estate professional’s career – not to mention financial costs of defending such allegations can be substantial and even financially debilitating.
Due to these risks, all real estate professionals and businesses should have an error and omissions policy in place. Unfortunately, not all insurers provide such coverage; therefore it’s essential that real estate professionals conduct extensive research when looking for providers specializing in this form of coverage – one who offers adequate protection at reasonable premiums as well as an efficient claims process.
E&O insurance not only covers legal defense expenses, but it can also reimburse any losses or damages sustained as the result of an E&O claim, such as attorney fees, court costs and settlement or judgment costs. The presence of E&O coverage also shows clients that you’re prepared for unpredicted events and committed to safeguarding client interests.
Important to keep in mind when purchasing E&O insurance is that it will not cover claims related to criminal activity such as fraud or breach of trust, nor property damage or bodily injury claims that arise during open houses or real estate-related activities (usually covered under separate general liability policies). Furthermore, some policies prohibit claims that occurred prior to an E&O policy being effective date; hence it is essential for licensees to arrange tail coverage with their provider before transferring brokerages or closing on sales transactions.