As a real estate professional, your clients trust you with their most precious asset – their property. As part of this trust relationship comes an expectation for providing accurate information regarding rentals, sales and purchases of their real estate investments – but any mistakes or oversight could lead to expensive legal battles that could financially devastate their businesses. Errors & Omissions (E&O) insurance provides essential protection from these costs by covering defense fees, settlement agreements or judgments that might otherwise cause irreparable harm.
E&O Insurance for Real Estate Agents
Real estate agents juggling multiple tasks and clients may sometimes forget to adhere to important details or deadlines, potentially leaving themselves open to lawsuits from clients and even lenders alike. A single misplaced signature could create problems for your clients as well as legal liabilities for themselves and you, while any issues with titles could lead to delays in closings or loss of sales; failing to adhere to regulatory requirements such as the Real Estate Settlement Procedures Act could even land them in court!
Errors and Omissions Insurance for Real Estate Businesses. A lawsuit from an unhappy client can cost your real estate business thousands in attorney fees, settlement costs and judgments; should they find you at fault, substantial fines could also be levied against your license and this should form part of any risk management strategy for real estate and mortgage businesses. Therefore errors and Omissions coverage is an indispensable component of risk management strategies in these sectors.
Errors and omissions insurance for real estate professionals provides protection from client accusations of professional negligence even if it’s not your fault. Also referred to as E&O or professional liability insurance, E&O coverage should be an essential policy in all real estate and title businesses in many states, while it’s often mandated.
Selecting the ideal E&O coverage depends on various considerations, including your desired coverage limits and what services your business provides beyond real estate (for instance loan origination or multiple employees). Higher limits may be needed if working in high-risk environments requires multiple employees or multiple roles with multiple risks to manage; alternatively broader coverage might be required if expanding beyond real estate into loan origination services, for instance.
E&O policies with added benefits such as pre-claim legal helplines and ongoing education on real estate trends provide extra peace of mind. Plus, look out for policies which combine E&O with general liability or cyber coverage so you have complete peace of mind.
Errors and Omissions Policies Can Save Businesses | An excellent E&O policy is often the difference between staying in business or going under. By adding one to your comprehensive risk management plan along with thorough documentation, consistent communication with clients, appropriate general liability coverage and cyber coverage you can help reduce risks while keeping your business thriving. Reach out today to learn about all your E&O insurance options by speaking to an experienced E&O specialist.