- Errors and omissions insurance
Errors and omissions insurance (E&O) helps cover the cost of a lawsuit if a client claims your work was inaccurate, late, or never delivered. It’s sometimes called professional liability insurance.
E&O protects against professional mistakes
An error on a title or an oversight in a property listing could lead to a lawsuit. Whether you are sued by a litigious client or you made a genuine mistake, errors and omissions insurance can help cover legal fees that might otherwise impact your business.
This policy provides liability coverage related to:
- Professional mistakes
- Failure to deliver promised services
- Accusations of negligence
What coverage can errors and omissions insurance provide for real estate professionals?
If a client claims you made an error that led to financial loss, you could stand to lose a great deal – especially considering the size of property transactions. For example, a real estate agent who misstates the amount of square footage in a property could face a major lawsuit. Errors and omissions insurance for real estate professionals helps cover:
- Attorney’s fees
- Court costs
- Settlements, judgments, and fines
Failure to deliver promised services
It’s possible you may miss a detail in repairs, paperwork, or another area. If a client claims a commercial landlord failed to provide agreed-upon repairs, for example, an errors and omissions insurance policy could help pay the cost of hiring a lawyer and other expenses related to a lawsuit.
Accusations of negligence
Regardless of your specialty, you can be exposed to liability stemming from alleged negligence, such as failing to inform a buyer about mold in a home. If clients claim you omitted information that might have deterred them from buying a property, you could face litigation. E&O can help pay legal expenses related to accusations of professional negligence, whether or not you are at fault.
Other policies for real estate professionals
Errors and omissions insurance provides critical protection against lawsuits related to your work, but it does not provide complete protection. No matter your field of expertise, accidents can happen. Other policies for real estate professionals to consider include:
Business owner's policy: This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
Commercial auto insurance: This policy covers vehicles owned by a real estate business. It typically pays for accidents and damages related to theft, weather, and vandalism.
Workers’ compensation insurance: This policy is required in almost every state for real estate businesses with employees. It can cover medical expenses for work injuries.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your real estate business with E&O insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.