errors and omissions insurance E&O Insurance for Real Estate Professionals | Axis Error & Omission
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E&O Insurance for Real Estate Professionals


 

E&O Insurance for Real Estate ProfessionalsReal Estate Agents & Brokers Errors & Omissions (E&O) insurance is designed to respond in the event you or your firm are involved in a claim that alleges financial damages due to negligence while providing or failing to provide your professional services. Claims can not only arise from the clients with whom you work but also from others connected to your real estate transactions, such as lenders, mortgage holders, property owners and prospective tenants with who you’re interacting when listing and selling properties, leasing space or managing properties.

E&O insurance, also known as Professional Liability insurance, is a form of risk management and is designed to step in to provide the legal defense costs involved in a lawsuit as well as damages if you are indeed found liable.

What is important to understand is that not all E&O policies are the same, which means that policies from one insurer to the next may differ significantly. How the insurance is triggered, the actual coverage, sublimits, endorsements, enhancements, and exclusions all have to be considered and analyzed when buying a policy to address your specific exposures. Working with an insurance firm experienced in securing and writing real estate professional liability coverage with access to various insurers in the E&O market is critical in getting a thorough and expert review of your choices and helping you make an informed decision.

Some of the claims that real estate professionals face include breach of duty, failure to disclose, failure to properly inspect a property, failure to provide documentation or reports, delays in closing transaction, libel or slander. For example, one recent claim involved a real estate agent who was contracted to find a suitable space for a retired couple for their ice cream shop. They were looking for a spot that would get lots of walk-in traffic, as they didn’t have a sufficient advertising budget to properly promote the shop.

Two months after they opened, the county closed off access to the street where the shop was located because of a restoration project to a sewer line. The shop closed and the retired couple sued the real estate agent for failing to let them know of the municipality’s project and the street closure, which they felt doomed their business. The couple was awarded $672,000 in damages. Without the proper E&O insurance, the costs to defend the case and subsequent damages would have been devastating to the real estate agent.

Axis Insurance Services has provided E&O insurance to hundreds of real estate firms over the years, including commercial realtors. We’re available to provide you with a comparison of your E&O options to determine what type of policy is best for you and your firm. We can secure a competitive policy based on the longstanding relationships we have fostered with our insurers. Call us today at (877) 787-5258 for a review of your current policy to determine if you are properly insured.

 

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Blogged on: July 22, 2015 by Mike Smith
Error Omissions
Error Omissions
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