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Understanding Errors and Omissions Insurance

Errors and omissions insurance for real estate agents covers judgments, settlements, and attorney fees in the event that you or your company is sued for mistakes or oversights made while providing your services as a real estate agent. Here are three things you need to know when shopping for errors and omissions insurance.
  1. Who Is Covered? - Determine exactly who is covered under your plan. Are your company's employees covered? How about personal assistants or independent contractors?
  2. What Is Covered? - Carefully review the list of exclusions in any policy; there can be a lot of them, and some might be vital to your business. If you're considering a policy that doesn't cover what you need, talk to the broker and find out if you can have that coverage added for an additional fee.
  3. When Does Coverage Start and End? - Errors and omissions insurance is unusual in that you're covered for claims made against you during the coverage period but not occurrences that happen during that period. As such, you should confirm with your broker exactly what dates will be covered under your policy.
These are just a few of the things you need to be aware of when choosing errors and omissions insurance for real estate agents. Review any policy carefully with your broker to make sure you know who exactly is covered under the policy, what situations are covered, and when your coverage begins and ends.