What is Real Estate E&O?

What is Real Estate E&O?

May 10, 2023

Real Estate Errors and Omissions (E&O) insurance is a type of professional liability insurance that provides coverage to real estate professionals if they are sued by a client for negligence or errors in their work.

Real estate professionals, including agents, brokers, and property managers, can face legal action if they fail to fulfill their duties and responsibilities to their clients. For example, if an agent fails to disclose a known defect in a property or provides inaccurate information about a property's value, a client may sue them for damages.

Real Estate E&O insurance can provide coverage for legal defense costs, settlements, and judgments in the event of a lawsuit. It can also provide protection for claims related to breaches of contract, misrepresentation, and other types of professional negligence.

Real Estate E&O insurance policies can vary depending on the specific needs of the real estate professional. Some policies may have higher or lower limits of coverage, depending on the level of risk associated with the work being performed. Deductibles and premiums may also vary based on the level of risk and the individual circumstances of the policyholder.

In summary, Real Estate E&O insurance provides valuable protection for real estate professionals, helping to mitigate the risks associated with their work and providing peace of mind in the event of a lawsuit.