Regardless of the industry you work in, it's important that you're financially protected. If your profession is directly tied to giving expert advice, like real estate, it can be confusing figuring out the types of business insurance coverage you need. One style of protection that should be considered a priority is errors and omissions.
What Is Errors & Omissions Insurance?
This is liability coverage for professionals. Unlike with home or auto insurance where the damage is physical-based, this style of coverage focuses on advice-based lawsuits. If you're sued and found liable for someone else's financial loss based on your professional recommendations, then your insurance policy will help cover the damages and legal fees.
As with other types of liability insurance, this option does have some exclusions. If the professional advice was given with the intent of harming another person either physically or financially, then the policy is voided. The same sentiment applies to claims brought about as a result of illegal actions.
Why You Need It
Errors and omissions coverage is particularly important for real estate agents and brokers because a huge portion of their work is providing advice. Many professionals assume their role is to offer the best recommendations based on the resources available; then it’s the client's responsibility from there. However, the courts don't see it that way.
While a client can either choose to follow or ignore your advice, the legal system places the weight of responsibility on the expert. You can be sued as a result of factors that are far out of your control like the housing market and location demands. For these reasons, it's vital that you have this policy in place for financial protection.
If you work in the real estate industry, keep yourself protected with the help of Insurance Advisors. They are dedicated to matching their Lakeville, MN, clients with insurance providers that cater to their unique needs. Find an errors and omissions insurance policy today by contacting them online or by calling (763) 393-4027. Stay up-to-date on the team's latest happenings by following their Facebook page.