E&O Insurance, fully known as Errors and Omissions Insurance, is a malpractice insurance coverage that is provided to real estate agents. This particular type of coverage protects against any loss financially due to a filed lawsuit as a result of your work in the real estate industry.

Even if you are careful in your job, making sure to dot all the i’s and cross all the t’s, you are still at risk day in and day out. Even with hard work and complete dedication, the smallest error in your line of work or the slightest misunderstanding could lead to an unwanted lawsuit, which could ultimately jeopardize your entire career.

With real estate E&O insurance, the insurance company is able to defend the claim brought against you and pays any judgment or settlement up to the liability limits that are outlined with your Errors and Omissions insurance. Traditional requirements under real estate E&O insurance, you can rest assured that you are minimizing the overall risk of potential negative exposure.

Consider this: let’s say that since the economy has turned into its current downward spiral, you have had to tackle new neighborhoods that you once thought you would never step foot in. You had to take these neighborhoods due to the fact that the homes in your regular areas weren’t selling and the need for money today is crucial. If you don’t get up to speed on the situations in the new neighborhoods including but not limited to the neighborhood rules, regulations and property values, you are risking unhappy clients and risking lawsuits, which could potentially harm your entire real estate profession.

All in all, if you are a real estate professional, the need for Errors and Omission insurance is imperative. This insurance coverage will protect you with the times get tough and can ultimately save your real estate career.