Real estate professionals provide essential services to their clients. Although they endeavor to offer optimal assistance or advice, they are still susceptible to being sued for mistakes, oversights or professional negligence. Errors and omissions (E&O) insurance can provide coverage for these situations.
The knowledgeable agents at Wateridge Insurance Services in San Diego, California, can help you secure the E&O insurance policy that meets your needs. Contact us for more information.
How Does Real Estate E&O Insurance Work?
Errors and omissions insurance may also be known as professional liability insurance. It functions similarly to other commercial insurance policies—in exchange for a premium, an insurance company agrees to provide financial assistance if a covered incident arises. These payments can reduce your out-of-pocket costs and help ensure affected parties are compensated.
What Does E&O Insurance Cover?
Errors and omissions insurance typically provides coverage for lawsuits from third parties (e.g., clients). These suits may claim that your business’s actions or inactions resulted in their financial loss. Allegations may regard:
- Professional negligence
- Inadequate work
- Failure to perform services
- Inaccurate advice
E&O insurance may help pay for the legal expenses (e.g., court costs, attorney fees, settlements and judgments) arising from these claims, even if the suit is eventually dropped.
Your agent can provide additional details regarding E&O coverage offerings, limits and exclusions (e.g., illegal actions or intentional wrongdoings are generally not covered). Reach out to us for details.
Which Real Estate Professionals Need E&O Insurance?
For some real estate professionals, errors and omissions insurance may be mandated by law. Even if it is not required, E&O insurance can provide coverage for real estate professionals who offer services or advice, such as:
- Real estate appraisers
- Property managers
Coverage for other real estate professionals may also be available.
How Much Is E&O Insurance?
The cost of errors and omissions insurance depends on several factors. Variables such as the location, size and revenue of your business, your claims history, and selected coverage limits may influence premiums.
The knowledgeable team at Wateridge Insurance Services can help you obtain an errors and omissions insurance policy that is right for you. Contact us today to get started with a quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.