Real estate errors & omissions insurance, also called E&O insurance, helps protect your real estate business from mistakes that you might make during the home buying or selling processes. This type of coverage is important if a client ever sues you, and it can help to cover related legal costs.
Errors and omissions insurance helps protect many real estate professionals, including real estate brokers, real estate agents, Realtors, and appraisers. Real estate E&O coverage may be bundled with your general liability insurance so that your business has maximum protection.
Mistakes in the real estate industry can be very expensive, and errors and omissions insurance for realtors and other professionals helps to protect you from the costs of a mistake. This type of insurance may cover several types of claims brought against you, including claims of negligence, misrepresentation, inaccurate advice, errors, and omissions.
For example, your E&O insurance can help protect you if you:
E&O for real estate agents can help cover expenses related to a claim, such as attorney fees, administrative and court costs, and any settlements or judgments.
Investing in this insurance can help protect your business from potentially large expenses. Having insurance may allow your business to continue to operate during and after a lawsuit, even if you are found to be at fault. If you don’t have insurance and are sued, your business will need to cover the costs of your legal defense, as well as any settlements or judgments. It’s also a good way to protect your business from any mistakes that employees make that might be out of your control.
While real estate E&O insurance may be optional, several states, including Nebraska, Rhode Island, and Texas, require real estate agents to carry an E&O policy. Be sure to check your local laws for any insurance requirements.
Having E&O insurance can also boost your clients’ trust in your business, especially if you’re doing high-value real estate transactions.
The cost of errors and omissions insurance for real estate agents will depend on many factors, including your business size and the number of employees, the state(s) in which you operate, your policy limits, your professional experience, and any history of past claims.
Since policy costs can vary so much, a personalized quote will give you the most accurate idea of what you’ll pay for insurance. You can get a free, personalized real estate E&O insurance quote online today to start exploring available policies.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
