As a real estate broker, errors and omissions (E&O) insurance is an indispensable component of your business. This specialized protection covers you from claims alleging your negligence caused financial losses for clients due to professional services provided to them.
Insurance against real estate lawsuits can provide invaluable protection, by covering attorney fees and court costs associated with defending against a lawsuit – even when the allegations prove false. By doing so, they help save reputational damage as well as costly legal battles which could threaten your license to practice real estate.
Even the most meticulous real estate professionals may make mistakes in their work. Misprints in paperwork, failure to disclose property defects or giving negligent advice during negotiations could all have serious repercussions for clients and your career if legal action were brought against you for such errors. E&O insurance provides protection should such actions come against you.
Errors and omissions insurance for real estate brokerage businesses is designed to cover legal fees, settlement costs, and any expenses related to claims brought against your brokerage business. Several states mandate E&O insurance policies for agents and brokers so it’s essential to understand their scope of coverage as well as any minimum limits required by your state. Furthermore, prompt reporting procedures must also be established as most policies stipulate reporting incidents within certain time frames or risk being invalidated by insurers.
Real estate professionals need both E&O insurance and general liability policies in order to remain financially solvent, in case any injuries or property damages occur during open houses or listing appointments. Many insurance providers offer combined policy packages at discounted rates to make your insurance experience simpler and save you money.
Cost of E&O insurance for real estate brokerages varies considerably based on numerous factors, including industry type and size. Higher-risk businesses will generally pay higher premiums. Your choice of deductible and limits also has an effect; to get an accurate quote it is wise to consult an insurance agent or broker.
South Dakota Real Estate Commission offers licensed real estate brokers a group error and omissions insurance policy administered by Rice Insurance Services Company LLC (RISC), administered through Rice Insurance Services Company’s Group Insurance Solutions program. All active licensees, such as residential rental property managers and salespeople are required to enroll. Simply submit an enrollment form along with payment made out to RISC along with your check for enrollment fees to join this policy; for additional details visit their website; licensed firm licensees not covered must submit proof of equivalent coverage separately to their commission office office office for consideration of membership in this policy group policy or submit proof independently to their firm office separately from them for coverage if applicable.