Why Real Estate Agents Need Errors and Omissions Insurance

As a real estate professional, you are expected to know everything there is about the properties you sell or market. Unfortunately, however, even the most diligent agent may make mistakes during property transactions that cost your clients money. Therefore, all real estate professionals should have errors and omissions policies (commonly known as E&O insurance) in place in order to provide protection from lawsuits related to professional negligence claims that could arise against them.

Real estate agents frequently face E&O claims when providing inaccurate property information. For instance, listing a home as connected to the city sewer system when in reality it has a septic tank can leave clients open to legal claims regarding costs for connecting municipal services; errors and omissions insurance real estate provides legal coverage in case any mistakes lead to financial loss for clients who sue over errors in real estate transactions.

Real estate errors and omissions policies provide coverage against common errors such as failing to inform buyers about potential foundation issues or forgetting to submit paperwork on behalf of your clients, or being held liable for vandalism or theft at homes you show clients. They can even help cover damages should someone be held liable.

Errors and omissions insurance for real estate is typically more affordable than other forms of business liability coverage, though its exact price will depend on various factors like how much coverage is purchased, your location, and how much is insured against. Furthermore, it’s vital that you fully comprehend what coverage each policy includes or excludes as this can have a substantial effect on its cost.

E&O insurance for real estate brokers, agents and appraisers is an essential purchase in today’s highly-competitive industry. Even the most diligent real estate agent could make mistakes that cost time and money in court proceedings.

Errors may occur during a sale and cost clients significant sums of money, so having errors and omissions insurance for real estate sales agents provides peace of mind that even minor slip-ups don’t jeopardize your career or the finances of your company.

Errors and Omissions Insurance for Real Estate Brokers is not mandatory in New York, but is still an intelligent choice if you wish to avoid expensive lawsuits. To find the ideal policy for your needs, reach out to an independent agent. Simply provide some basic information about yourself and your business to receive a free quote through NEXT today – then sit back while we find you the ideal coverage! Get your quotes now!


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