Real estate errors and omissions insurance is used to protect real estate companies from lawsuits. Sometimes clients feel that they did not receive necessary services or that the services they received actively harmed them, which might lead to them suing over honest mistakes. Errors and omissions coverage, however, is a good way for a company to protect itself against human error, angry clients, and expensive lawsuits.
Comprehensive and Customized
Comprehensive errors and omissions coverage should address risks that are specific to each client, providing custom protection for every real estate agency. In addition, a good plan will offer protect in areas that other, small policies might omit.
Forms of Coverage
A comprehensive, custom policy might cover many different areas, such as REO (real estate owned) work with foreclosed properties. Real estate errors and omissions insurance can also protect against exposures related to pollution, where the land is not as pristine as thought, or discrimination, where the client feels as though they have not been treated fairly. Errors and omissions coverage can be applied to site placement, land and farm sales, or owned property exposures. It can even be extended to employment practices liability, protecting against lawsuits brought by a firm’s own employees rather than its clients.
There are a number of risks to handle when dealing in real estate, and the potential for lawsuits affects companies of every size. Customized real estate errors and omissions insurance, however, can protect a company in a wide range of areas.