Real estate appraiser E&O insurance (sometimes known as professional liability or errors and omissions (E&O) coverage) provides protection for real estate appraisers who may face legal action related to their work. No matter what it’s called, real estate appraiser E&O policies can be one of the most critical policies you purchase to secure your livelihood and future earnings potential.
Errors can happen in almost every field of work. While we hope no client sues over your appraisal results, errors and omissions (E&O) policies provide crucial protection in case something does go wrong with a project appraisal report. E&O insurance helps cover legal fees, fines and judgments up to your policy limits as well as lost earnings incurred as a result of legal action taken against you and lost income caused by that litigation if necessary. It should be noted however, that E&O does not include coverage against property damage claims made against companies and entities as a result of data breaches or criminal acts by others involved parties involved.
When shopping for E&O insurance, be sure to compare quotes from multiple providers and read your policy in detail in order to fully comprehend all its provisions. Furthermore, it may be beneficial to hire an agent or broker who specializes in this form of coverage so they can better explain it and answer any queries that arise from it.
Technical terminology used by insurance providers can be complex and often cryptic to those unfamiliar with its meaning. Terms such as “Claims Made” and “Prior Acts” can be particularly bewildering to outsiders unfamiliar with this industry. But, remember this: regardless of what your quote or policy states, its effectiveness ultimately lies with claims history and track records of each provider you select for business.
Real estate appraisers should look beyond traditional E&O policy provisions when searching for insurance that will provide coverage against property discrimination and fraud allegations, which has become an increasing risk in recent years and could result in major financial losses for them if their policy does not adequately protect against these incidents.
An important consideration when purchasing an E&O policy is reporting any disciplinary matters you know of on the application form for E&O coverage. Failure to do so allows insurers to revoke your policy should a claim arise later on.
At Brunswick Companies, we have extensive experience helping appraisal providers secure appropriate insurance for their needs. With access to numerous top-rated insurers and our expertise in helping navigate this process and find you coverage quickly and easily. If you have any inquiries about real estate appraiser E and O coverage options please give us a call or send an email – we are always happy to assist!