No one is immune from making mistakes, which is why it is vital for real estate professionals to protect themselves by purchasing an errors and omissions insurance policy. Real estate E and O plans cover legal fees when lawsuits occur related to your job performance.
E and O Insurance for Real Estate Protects Against Various Claim Types
It is easy to miss potential problems with a property, even with the proper inspections. However, oversights and blunders during a sale can lead to financial loss for your clients. When people lose money, they are likely to sue. E and O coverage protects you from lawsuits claiming allegations such as:
- Breach of duty
- Breach of contract
- Property damage
- Disputes related to earnest or escrow payments
- Dual agency
- Licensing claims
Real Estate E and O Policies Mitigate Costs
This type of coverage helps pay for legal fees, court costs, settlements and damages related to professional liability claims. Regardless if you are to blame, you still incur costs to defend yourself in court. As a real estate agent, you work with many clients with large sums of money on the line. E and O plans protect you from the associated risks of your job duties.
There are many variables in the real estate business that could lead to costly mistakes or omissions. Simple errors can have significant consequences for you and your clients. Ensure you safeguard your finances with adequate liability coverage.