Working in real estate can be an incredibly fulfilling job. You get to help eager buyers find their dream home or place a growing business in the right commercial space. No matter how careful you are, you may still run the risk of even unfounded lawsuits. Having the right e & o insurance can protect you from the high cost of court battles and related issues.
What Does It Cover?
In general, errors and omissions insurance covers claims that may occur due to a mistake you may have made. This could include a clerical error on paperwork or leaving out pertinent information regarding a property. Costs related to these claims can be devastating to your business, which is why e & o insurance is a necessity. A policy typically comes with deductibles, exclusions and liability limits, which should be thoroughly discussed with a knowledgeable agent.
No matter if you are threatened with a lawsuit or not, keeping records of conversations and appointments you have with clients is a good idea. Note information such as the date and the items discussed. For example, if you recommended a home inspection and the buyer declined, make a note of it. You may even have your client sign a statement indicating that they declined your advice. This may protect you and your insurance company may request such information in the event a claim is filed against you. Having e & o insurance is an added layer of protection that can mitigate the expense of a potential lawsuit.