If you operate a real estate company or work within the industry as an agent, broker, franchisee or agency owner, E&O insurance is essential to protecting your business. This form of professional liability coverage offers protection from errors or omissions in service delivery; however it should not be seen as a replacement policy which covers bodily injuries or property damages caused during open houses etc.
While not mandatory in many states, having professional liability coverage is highly recommended to protect themselves against financial losses that might result from professional mistakes or negligence. It also shows clients that you take their responsibilities seriously while building trust and credibility with them.
An error and omissions policy is an invaluable safeguard against lawsuits brought against you for negligence, malpractice or other wrongful conduct related to real estate work. As such, investing in one is worth your while given its often litigious and complex nature.
Errors and omissions can encompass anything from providing inaccurate property details to forgetting to have clients sign an essential document during the closing process, to misrepresenting or failing to disclose facts such as its floodplain location or presence of toxic mold or lead paint.
These issues are unfortunately prevalent, which is why all real estate professionals must possess an error and omission policy. An E&O policy provides coverage against attorney fees and court costs related to lawsuits brought against you for your errors; additionally, damages such as lost revenue or marketing expenses arising due to negligence can also be covered under such policies.
Errors and omissions policies contain exclusions that must be reviewed carefully prior to purchasing them, for instance any acts which breach confidentiality or break laws which put licenses at risk; furthermore some policies might not cover incidents of discrimination or harassment of clients or prospective customers.
Costs associated with error and omissions policies can differ widely, depending on factors like brokerage size, location and risk profile. You can quickly find an ideal e&o real estate policy by comparing policies against these criteria; alternatively speaking with your broker or agent about which policy might best suit your business can provide helpful feedback as to which coverages and options may best meet them. By doing your research you can be sure that you have chosen an error and omissions insurance for real estate professionals that meets all their needs.