What is Errors and Omissions Insurance?
Errors and omissions (E&O) coverage is part of a professional liability insurance policy most of the time. It covers damages caused by the real estate agent (errors) or damages caused by something the real estate agent failed to do (omissions). Customers can claim that you acted incorrectly on their behalf, and that the error caused them harm or cost them money.
Why do I need Errors and Omissions Insurance?
Errors & omissions (E&O) coverage is not included on a commercial general liability policy. Commercial general liability policies DO NOT provide coverage for contract disputes, errors, or any other professional liability occurrences.
Real estate companies, agents, or brokers who have liability coverage without errors and omissions coverage are at serious risk. It would be like a doctor that is practicing medicine without a malpractice insurance policy.
Mistakes can happen. Every company is liable to mess up at some point. A real estate agent can’t be everywhere at once and handle every job. Errors and omissions (E&O) coverage insures your mistakes, but also the mistakes of any employees you might have or independent contractors you might hire.
Errors and Omissions Insurance for Real Estate Agents, Brokers, and Business Owners in Utah