Real estate can be an arduous industry, and even the most diligent professionals may make errors during business. From forgetting paperwork due to being overloaded to misdescribing properties listed for sale or providing bad legal advice to clients – even mistakes made unknowingly can have severe repercussions that require serious rectification efforts to rectify. Errors and omissions insurance for real estate is designed to cover such incidents by offering financial protection against lawsuits or compensation claims that arise as a result of your work.

Real estate errors and omissions insurance (commonly referred to as E&O insurance) provides protection from accusations of professional misconduct or any damages awarded to your clients in the event of legal claims against your work, making this an important policy for real estate agents and brokers, required in some states by law. Aside from providing protection from costly legal disputes, it also shows clients you take their interests seriously and invest in protecting their best interests.

Real estate E&O insurance can be vital for a variety of reasons, with some of the more notable ones including:

Mistakes in real estate can lead to expensive litigation. Even if the mistake wasn’t your responsibility, a lawsuit could easily bankrupt your business and leave you struggling to cover legal fees. E&O insurance for real estate can reduce some of these risks and is usually cheaper than other forms of professional liability coverage.

Before buying E&O real estate policies, it’s also essential to understand their operation. E&O coverage typically extends to any employees or independent contractors hired for your business – though there may be exceptions; therefore it would be advisable to review your policy prior to hiring temporary workers or adding anyone new to your team.

Real estate errors and omissions insurance won’t cover claims related to fraud or criminal activity during your career as a real estate agent or broker. Furthermore, if you fail to report claims within a given timeframe or provide adequate details about them, your policy could be cancelled as a result.

RISC provides an affordable state-endorsed Errors and Omissions (E&O) insurance program designed to meet or exceed minimum state requirements. Underwritten by Continental Casualty Company of CNA insurance company and administered by RISC.

To gain more knowledge on e and o real estate insurance, contact RISC or complete our online application. Our insurance experts can answer your questions and assist in selecting coverage to fit your individual needs, while explaining any state requirements or guidelines to ensure you remain compliant. This program is specifically for licensed real estate professionals – new applicants must obtain equivalent Errors and Omissions coverage independently or submit a certificate signed by an authorized insurance representative prior to being granted their original license from RISC.