Errors and Omissions Insurance for Real Estate Brokers is designed to safeguard agents, brokerages, franchises and individual real estate professionals against legal claims for mistakes or negligence in their professional services, protecting against legal liabilities that could arise as a result. Commonly referred to as E&O Insurance policies – E&Os are essential policies within the real estate industry and required by many firms and associations alike.
No matter how careful we may be, errors and omissions coverage is still necessary to protect yourself if one of your services result in mistakes that cause major consequences for clients. Mishandling transactions could include failing to disclose foundation issues with property, late submission of closing paperwork or mismanaging transactions – any minor mistake could have major repercussions for both you and the clients involved. Errors and omissions coverage provides peace of mind if one arises as it could help cover fees related to fighting frivolous claims by protecting against frivolous lawsuits as well as covering fees related to any such claims brought by parties involved in such a lawsuit against an accusation made against yourself if such an event should arises against you from lawsuits being brought by third-parties who wish to bring frivolous claims by clients against you defending against frivolous ones, potentially costing them dearly.
Though errors and omissions coverage for real estate agents isn’t required in every state, it remains a popular option among industry members. Not only is it smart business decision, but errors and omissions coverage also protects personal assets while upholding professionalism in an already highly litigious field.
Real estate transactions can often be an emotional or stressful process for clients, which increases the chance that they might take exception with something you did or failed to do. For instance, they might sue you if they believe something like foundation cracks or leaky roofs could affect their buying decision and should have been disclosed prior to purchase.
National Association of REALTORS(r) and its insurance provider Victor offer members-only rates on an E&O policy designed specifically to protect real estate errors and omissions while simultaneously safeguarding personal assets and maintaining professional standards.
Legal expenses aside, an E&O policy for real estate can help protect you against costly fines for breaking federal, state, and local regulations. An essential policy for any licensed professional, it may even be mandatory in many states where real estate licenses are active.
Real estate errors and omissions coverage is essential to keeping clients satisfied, which is why Victor provides this vital coverage to agents. Get a quote for E&O coverage now to start safeguarding your career, reputation and livelihood with Victor.