What Does Real Estate Agent Errors and Omissions Insurance Cover?

Insurance for real estate agents may seem unnecessary because their industry is low risk. However, no matter what profession you're in, you need to be covered for errors and omissions as everyone is prone to making mistakes regardless of experience or practices. This coverage, also known as professional liability insurance, protects real estate agents from the following situations: failing to inspect property properly or at all, failing to share material facts, failing to supply reports and documentation, failing to recommend a reasonable price, delaying the close of a transaction, and being guilty of discrimination, libel, or slander. If you so much as tell your clients the wrong school district their children would be in upon moving to their new home, you could be susceptible to a lawsuit. There are a variety of ways you can end up facing professional liability, so obtaining the right insurance for real estate agents is a must. It's also important to customize your policy to address your specific exposures. If the time comes that you find yourself facing legal action for an error or omission, your policy will cover all your legal fees and any resulting indemnification. It's always best to be prepared for claims as it's impossible to guarantee you will never make an oversight on the job.

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