Real estate agents and brokers play an indispensable role in the real estate business. They help people buy and sell homes while also providing information about valuations and other factors influencing homebuyer and seller decisions. Unfortunately, even with their best intentions in mind, mistakes do happen that could cost money or reputation; errors and omissions insurance provides one way to safeguard against these unexpected costs for real estate professionals.
In this article, we’ll describe what errors and omissions insurance is and how it can protect your real estate brokerage or business. We will explore what E&O covers as well as any costs or exclusions involved with coverage and provide tips for how to prevent an E&O claim from ever happening in the future.
Why Should Real Estate Agents Carry Errors and Omissions Insurance? Even the most diligent real estate professionals can make errors that lead to expensive disputes with clients. From missing disclosures or listing properties incorrectly, errors occur every day that require them to seek professional indemnity insurance in case their negligence leads to litigation arising from legal fees or court expenses associated with a lawsuit against them arising out of professional mistakes. It’s therefore critical for real estate professionals to carry an E&O policy to cover such costs incurred defending such legal battles should such a lawsuit arise over professional mistakes made during transactions or listing errors made due diligence oversight on their part.
Although not required in all states, most real estate agents and brokers choose to carry an E&O policy to safeguard their businesses and clients. Some even insist upon it before doing business with an agent. Without E&O insurance in place, any single lawsuit could potentially bring down their entire company or even lead them down a disastrous path – leaving their operations vulnerable against unexpected events such as clients moving their properties.
An E&O policy typically provides coverage for both property damage and personal injury claims, though not all real estate E&O policies offer equal coverage; some may provide more comprehensive protection, covering such things as plumbing or roof repair issues as well as potential loss of rental income caused by major repairs or natural disaster.
While an E&O policy can provide protection from mistakes and oversights that cause financial hardship for your real estate business, it cannot replace careful attention to detail and superior customer service as two essential aspects of real estate success. Unfortunately, accidents do happen and at times mistakes made will result in disputes with clients.
Victor’s Real Estate Errors and Omissions Program is tailored to provide real estate agents and brokers with modern, flexible coverage they require in today’s market. Endorsed by the National Association of Realtors and available exclusively to members at special members-only pricing, our E&O program can be easily obtained online 24/7/365 from your desktop PC in minutes! You can quickly obtain a quote and purchase it, or contact us for additional insight on how our program can support your success – also check out our Real Estate ProtectionPlus Guide for further insight!