As a real estate broker or agent, your work involves major financial decisions – such as families spending their life savings on a new home or a company putting money into an office building. But these transactions also come with significant risks; even minor errors could have dire repercussions; for this reason it is imperative that real estate professionals have robust e&o insurance real estate brokers coverage in place.
Errors and Omissions (E&O) insurance is an essential safeguard for anyone working in real estate – from agents and brokers to appraisers and inspectors. As with general liability policies, E&O coverage safeguards professionals against claims alleging negligence or professional error during the course of their work, providing protection for legal fees, court costs, administrative expenses and settlement costs as a result of such lawsuits.
E&O insurance for real estate brokers not only offers financial security but also brings many other important advantages. It helps build client trust in an industry where mistrust can derail deals; can set you apart from competitors; many savvy clients look specifically for this feature when selecting agents; and may help protect against claims so you won’t need to close shop while fighting allegations against your operation.
An E&O policy typically offers per-claim limits ranging from $100,000 to $1 million or higher, along with aggregate limits to protect you against multiple claims at once. Most policies cover real estate listing issues like inaccurate descriptions, misrepresentations of property facts and failing to disclose mold or flooding risks; as well as mortgage brokerage-related concerns like loan origination errors and appraisal disputes. Many policies also offer comprehensive protection when purchased along with general liability and cyber insurance policies.
E&O insurance should be seen as an investment in your career longevity. Its purpose is to shield against the potentially devastating effects of lawsuits and allow you to focus on providing excellent client services and closing deals – while making mistakes is inevitable, having this safety net in place can allow you to weather the storm and remain in business that you love.
Be sure to review your policy closely so you’re aware of any exclusions; for instance, most real estate E&O policies won’t cover bodily injury or property damage caused during work (this is covered under general liability policies), while standard E&O policies usually don’t protect against breaches in privacy or criminal charges either. It is crucial that you discuss these types of issues with your broker in advance – they will know which options best meet your business needs.