Real estate is an intricate business involving large sums of money, complex regulatory procedures and multiple outside parties – mistakes are inevitable! That is why every real estate professional needs E&O insurance as part of their professional liability package to cover potential mistakes made while working with clients that leads to legal action against them and compensation payments or penalties from legal actions brought against them by third parties. Also referred to as Professional Liability Coverage in real estate.
Errors and omissions can happen to anyone, even experienced real estate professionals. Misunderstanding terms or failing to disclose information is easy when working with multiple clients and properties on a regular basis; one slip up could land you in court and ruin your reputation as a real estate professional.
Real estate professionals understand the importance of upholding an excellent reputation, but when mistakes result in court actions it can be hard to repair them quickly. Establishing a policy shows you take your career seriously and are prepared for whatever may come.
Even when an accusation is without merit, defending oneself against it can be costly and time consuming. Lawyer fees alone could quickly add up. An E&O real estate insurance policy could help alleviate some of this financial strain caused by frivolous lawsuits that go nowhere.
Some states mandate real estate professionals carry this kind of insurance, yet many brokers and agents don’t need it for their businesses. Even though this kind of coverage may not be required in your state, having this protection in place is still vitally important if you want to continue working in an industry that requires such close attention to detail.
What Does E&O Real Estate Insurance Cover? Errors and omissions are covered by this form of real estate insurance; however, there may be exclusions. For instance, this coverage often doesn’t extend to property damage done during transactions, or environmental harm done as part of these transactions.
Cost of Errors and Omissions Insurance Can VaryDepending on where you’re based, size of brokerage and coverage needs, most NEXT customers typically find a comprehensive errors and omissions policy costs between $25-75 monthly depending on individual circumstances. Our dedicated team understands your risks well to offer tailor-made e&o policies tailored specifically for each person or firm – contact us now for a complimentary quote!