When purchasing real estate errors and omissions insurance, there are various options available to you. Either you purchase an individual policy on your own, or obtain one through your brokerage firm that covers all agents who work there for a set time period; once they leave this firm they must either acquire tail coverage or buy their own individual E&O policy separately.
Real estate professionals’ costs for Errors & Omissions insurance vary based on factors including brokerage size, type, risk assessments and individual assessments of risk. E&O costs tend to increase with transaction complexity; thus it’s essential that they work with an insurance broker who provides comprehensive protection.
Though it might seem counterintuitive to spend money on something that could wreak havoc with your career, E&O insurance is an essential expense for brokers and agents in real estate. Without it, license or business could be lost; even frivolous lawsuits can devastate finances and reputation.
The best E&O policies offer comprehensive protections, from legal defense costs and any settlements or judgments awarded in covered claims to legal defense costs and settlement awards. Without this coverage, these expenses would have to be paid from pocket; otherwise the financial strain associated with defending such a claim can be debilitating for many real estate professionals.
Real estate E&O insurance is essential in protecting professional reputations. Even when allegations in a claim prove unsubstantiated, negative publicity campaigns can still damage it severely and hinder trust between clients and professionals. E&O policies provide essential peace of mind, so that professionals can focus on fulfilling their job duties without fearing reputational risk.
Errors and omissions lawsuits are more prevalent than you might imagine, and can be costly in terms of lost revenue, legal fees and time lost from running your business. Even when proven frivolous or without merit, an error or omission lawsuit can still cost your business financially and legally.
Errors and omissions can occur in any aspect of real estate brokerage, from misrepresenting a property to failing to properly secure lock boxes. Errors like these can result in lawsuits that cost both you and your brokerage dearly – not to mention cause lasting damage to both reputations.
PBI Group can assist in finding an individual or group E&O insurance policy to meet your unique needs, from individual to real estate brokers. With over 50k real estate errors and omissions policies written for thousands of real estate companies and our extensive expertise writing E&O insurance policies tailored specifically for them all – PBI Group are confident we have something suitable. We’re dedicated to finding you a comprehensive yet cost-effective E&O policy which offers protection at an affordable rate.