Real estate transactions involve many moving parts; even the most experienced professionals can make mistakes. That’s why real estate errors and omissions (E&O) insurance is an essential form of coverage for anyone involved in the industry. In this article, we’ll explore what E&O insurance is, standard E&O exclusions to look out for, and steps you can take to protect yourself.
What Is E&O Insurance?
Errors and omissions insurance, or professional liability insurance, provides coverage for professionals who are sued for negligence or mistakes related to their work. In the real estate industry, this type of insurance can protect agents, brokers, and other professionals from lawsuits related to their services, such as misrepresenting property listings or failing to disclose important information to clients.
Common E&O Exclusions
Like any insurance policy, real estate errors and omissions insurance has limitations. Here are some of the most common exclusions to be aware of:
- Intentional wrongdoing: E&O insurance will not cover intentional wrongdoing, such as fraud or misrepresentation.
- Criminal activity: E&O insurance will not cover criminal activities, like money laundering or embezzlement.
- Breach of contract: E&O insurance will not cover breach of contract claims, as these fall under a different type of coverage.
- Property damage: E&O insurance will not cover claims related to property damage, as this is typically covered by general liability insurance.
Steps You Can Take to Protect Yourself
While real estate errors and omissions insurance is an important form of protection, there are other steps you can take to minimize your risk of lawsuits and claims. Here are some tips to keep in mind:
- Communicate clearly: Make sure you communicate clearly and accurately with clients, disclosing all relevant information and answering any questions they may have.
- Document everything: Keep thorough records of all transactions and communications, including emails, contracts, and other documentation.
- Stay up to date: Stay current on industry regulations and laws, and make sure you are always acting in accordance with them.
- Get educated: Consider taking courses or attending workshops to improve your knowledge and skills and stay informed about best practices in the industry.
Protect Your Real Estate Business with Comprehensive E&O Insurance from Lou Aggetta Insurance!
If you’re a real estate professional looking for comprehensive errors and omissions insurance coverage, Lou Aggetta Insurance can help. Our experienced agents can work with you to understand your unique needs and risks and help you find the right coverage at the right price. We also offer a range of other insurance products, including general liability insurance, workers’ compensation insurance, and more. Contact us today to learn more about how we can help protect your business.