Does a Real Estate Broker Really Need an E&O Policy?

Professional liability insurance, also known as errors and omissions (E&O) insurance, safeguards businesses from lawsuits alleging negligence or inadequate services, regardless of whether a mistake was actually made. This type of insurance is crucial in covering defense costs and any settlements or judgments, especially in industries prone to litigation. For instance, a real estate broker facing claims about undisclosed property defects can incur substantial legal fees, even if the claims are baseless. E&O insurance provides financial protection in such costly legal battles, filling a gap that a standard Business Owners Policy doesn't cover, thereby offering essential protection against professional liability claims.

Erazo Insurance Services LLC works with multiple insurance carrier that specialize in E&O for Real Estate Brokerages.