Real estate agents deal with numerous clients each week, along with associates who assist them. Mistakes will likely occur and could cost an agent or broker dearly; that is why E&O insurance – errors and omissions coverage – should be part of your portfolio.
Errors & Omissions insurance for real estate professionals is designed to cover the legal defense or settlement costs resulting from claims alleging inaccuracy, incompleteness or lateness in services provided. Errors & Omissions coverage is often required by states for licensing purposes as well as serving to build trust between you and your clients.
Notably, an E&O policy for real estate agents differs significantly from general business liability coverage as E&O coverage typically only addresses less serious events that involve negligence and misrepresentation.
E&O insurance for real estate agents provides coverage against a range of errors, such as failing to disclose known issues with a property, providing false loan application information or engaging in transaction without client consent. Having an effective E&O strategy in place is crucial for any real estate professional, helping avoid costly errors that could have detrimental repercussions for their career or finances.
Who Needs Real Estate E&O Insurance? Real estate E&O insurance is an essential product for licensed agents and brokers, whether working from home alone or managing multiple locations. Even experienced agents run the risk of making mistakes that put their business or reputation at stake; even those with impeccable records could encounter unexpected claims leading to litigation at some point in time.
An E&O policy can cover the expenses incurred while defending against such claims and any judgments or settlements that must be paid as a result. Exact costs depend on factors like brokerage size and type, nature of industry, risk assessment methodologies employed as well as your individual risk profile.
Searching for an insurer that specializes in real estate errors & omissions insurance will allow them to better understand your unique risks, providing tailored coverage. Assess your deductibles and limits, and consider purchasing an umbrella policy to cover gaps in coverage. Selecting an adequate policy will give your business peace of mind while freeing you to focus on serving its customers more effectively. Today, getting insured is simple. Victor offers state-of-the-art E&O insurance designed specifically for real estate brokers and agents at special NAR REALTOR Benefits members-only prices. Simply request a quote or reach out – our staff are on hand to guide you through the process and help ensure you obtain adequate coverage.