Errors and omissions insurance for real estate agents is an absolute must, but many real estate professionals might wonder if they really need it. This coverage, also known as professional liability insurance, is important for a number of reasons.
Even the best real estate businesses can find themselves victim to a lawsuit. Real estate businesses are often sued for mistakes such as failure to inspect property, failure to disclose material facts, failure to provide documentation, failure to recommend a reasonable price, or delays in closing the transaction. Unhappy customers have sued for reasons such as undisclosed termite damage or misinformation about school districts. Even the best brokers and agents can forget steps, get details wrong, or make mistakes.
Thats where insurance comes in. A lawsuit can cost thousands of dollars in legal fees even if its decided in favor of the real estate broker, but liability coverage can help take care of both the cost of defending the lawsuit and indemnification. Errors and omissions insurance can help guarantee that a minor mistake or the perception of a mistake doesn’t financially ruin a real estate professional.
Our society is getting more and more litigious, which is why professional liability insurance is a must for any real estate broker. Errors and omissions insurance for real estate agents protects professionals, their companies, and their customers from simple human error.