While some professionals wonder if the various types of business-related insurance is worth the investment, they should have no doubt that error and omission insurance for real estate agents is one type of coverage that can prove essential. As an agent or broker, you never know when an incident may happen that results in a client making a claim against you. Even the most detail-oriented, experienced, and skilled real estate professional can be accused of some type of negligence in the line of duty.
Lawsuits and even mediation can prove to be very costly, creating a big financial burden on an agent, even if they are found innocent of the claims made against them. This is because there are all sorts of legal fees that have to be covered. In some instances, the expense has been enough to cause the broker or agent to go out of business, lose their jobs, or even end up in personal financial ruin. A claim can be made for an error as simple as mistakenly telling a client the wrong school district for the house they purchase. Some professionals have been sued after a client purchased a house only to later find out that their new home has a mold infestation.
You may never know when you will get hit with an omission claim, but by having E&O insurance for real estate agents, you help to protect yourself against the expensive unknown.