What is errors and omissions insurance in real estate?

There is no dearth of insurance in the world I would say. My uncle is a real estate agency owner and he was once discussing with my father about the e&o insurance policy. I was sitting there listening to their conversation and I realised okay, there is a type of insurance to protect real estate agents as well. Let me share with you what is errors and omissions insurance in real estate with you.

Errors and Omissions Insurance provides cover to real estate brokers and agents in case they are sued by their clients. The clients can sue the broker if the deal turns out to be wrong. The cover comes in handy if the verdict goes against the real estate broker or agent. 

• Claims in case of omissions, errors and negligence on account of duties of the real estate agent

• Claims covered during the policy tenure if anything goes wrong

• Claims arising due to criminal activity undertaken by the real estate agent  

• Claims arising due to damage caused by real estate agent to third-party property 

If you are any of the following parties, you should buy the errors and omissions insurance:

• Real estate agent

• Real estate broker

• Real estate manager

This is all I could gather from their conversation. I hope this information on what is errors and omissions insurance in real estate. 

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