Real Estate Errors & Omissions Insurance is a specific form of Professional Liability Coverage. It protects your brokerage from the financial impact of alleged mistakes made by your brokerage and its agents while acting in a professional capacity on behalf of others.
For example, Buyers and Sellers can claim that their agent misrepresented facts (an Error) or failed to disclose known information (an Omission), while acting on their behalf during a real estate transaction. In many of these cases, both your brokerage and the agent can be held financially responsible for these mistakes. Without proper E&O coverage in place your business could be solely responsible for the financial impact of any claim brought against you which can include both defense and indemnity. Not to mention countless hours of distraction from your business and your clients.
Common E&O claims against real estate agents and brokers include:
- Failure to disclose
- Breach of duty/breach of contract
Comprehensive E&O programs will offset the financial impact that allegations like these can have on your business. High-quality programs also offer additional risk management tools and resources to help reduce the possibility of E&O claims from arising in the first place.
Having the right Errors & Omissions policy – one that’s designed to meet the specific needs of today’s real estate brokerages – can protect your business’ financial stability; allowing you to focus on what matters most.