Real estate errors and omission insurance (REOI) is a type of professional liability coverage designed to safeguard real estate agents, brokers, appraisers and other real estate professionals against client allegations that the advice or services they provided was either subpar or negligent. REOI coverage provides essential protection for any business operating in this sector as errors are commonplace and costly to defend; so having appropriate coverage helps prepare businesses against possible risks that arise during property sales transactions, rentals and purchases.
An unexpected lawsuit could put your business out of operation if it does not have adequate coverage in place. Even when doing your best to protect clients, one mistake can have disastrous financial repercussions and one unhappy client can ruin both your reputation and business. A comprehensive risk management plan serves as your initial defense; errors and omissions (E&O) policies provide added coverage when prevention efforts alone cannot prevent legal claims from materializing.
E&O policies may differ based on your profession, but most offer similar coverage such as professional negligence and breach of fiduciary duty, as well as general liability (GL) insurance to protect you and your clients in case something goes wrong during a transaction.
However, the price of an errors and omissions policy varies based on factors like company size, location of operation and coverage limits selected.
Finding an insurer who understands the unique risks facing this industry and can craft an appropriate policy is essential for its protection. For example, make sure that it includes language that addresses electronic signatures and other technologies becoming increasingly common within this sector. In addition, review all exclusions and limitations carefully in your policy to ensure its adequate protection of your business.
NEXT customizes each errors and omissions policy to meet the individual needs of its clients, with prices typically falling between $25-75 per month for an individually tailored policy.
As an independent insurance agency, NEXT can offer competitive rates on Real Estate Agent/Broker Errors & Omissions (E&O) Insurance to both commercial and residential real estate agents and brokers. Get instant online or phone coverage confirmation in most cases on the same day (most cases). Our team of experts are here to assist. They can answer your questions and select appropriate coverage to protect your real estate business successfully and profitably – our aim being helping real estate agents build successful and lucrative businesses! Our services have been serving real estate agents/brokers for over 23 years so don’t wait any longer – get started now!