Errors and Omissions Insurance (E&O), otherwise known as professional liability coverage, is essential when helping clients make one of the most significant investments of their lives. Errors & Omissions (E&O), also referred to as professional liability protection or PLP, is designed to safeguard real estate businesses against claims arising out of services they provided clients.
Errors and omissions in real estate can be costly, particularly when they lead to lawsuits from clients. Even when found without merit, legal fees and lost earnings associated with defending claims could financially cripple your business. E&O insurance offers protection from these risks so that you can focus on providing clients with excellent services instead of worrying about legal battles.
Some states mandate E&O insurance for real estate professionals. Even if your state doesn’t mandate it, many mortgage lenders and brokerages won’t work with you without proof of coverage as mistakes and errors may happen when dealing with large sums of money and complex transactions involving multiple parties. By having E&O coverage in place, you can protect yourself financially as well as show clients you take their best interests seriously.
Though the details of an E&O policy will differ between providers, most provide coverage for common professional errors that often cost clients thousands to repair – such as failing to disclose property defects (like cracks in plaster that cost thousands), misrepresenting home features (for instance advertising three-bedroom houses as two bedroom without office space), or failing to meet transaction paperwork or deadlines correctly.
E&O insurance not only protects your finances, but it can also safeguard your reputation in real estate. A single error or lawsuit could severely undermine your credibility and make new relationships hard to develop – that’s why it is crucial to select an insurer with strong A.M. Best or Standard & Poor’s ratings so they will always be there when needed.
When searching for California real estate errors and omissions insurance, Victor offers an easy, user-friendly experience with quick quotes online. As an NAR REALTOR Benefits partner, Victor provides modern E&O programs tailored specifically to the needs of real estate agents and brokers today – plus, our membership pricing options give our members even more savings!