Real estate errors and omissions (E&O) insurance is a specialized form of professional liability insurance designed to protect real estate professionals, such as real estate agents, brokers, property managers, and appraisers, from claims of negligence, errors, or omissions in their professional services. Here are some common insurance coverages associated with real estate E&O insurance:

  1. Professional Liability Coverage: Professional liability coverage is the primary component of real estate E&O insurance. It provides financial protection in the event that a client alleges negligence, errors, or omissions in the professional services provided by the real estate professional. This coverage helps cover the costs of legal defense, settlements, or judgments resulting from professional liability claims.
  2. Legal Defense Costs: Real estate E&O insurance typically covers the costs of legal defense, including attorney fees, court costs, and other related expenses, for covered claims or lawsuits.
  3. Disciplinary Proceedings Coverage: Some real estate E&O policies may include coverage for defense costs associated with disciplinary proceedings initiated by a regulatory body or professional licensing board.
  4. Prior Acts Coverage: Prior acts coverage, also known as retroactive coverage, extends the policy’s coverage to claims arising from professional services rendered before the policy’s effective date. This is important as it provides protection for past activities that may result in claims during the policy period.
  5. Personal and Advertising Injury Coverage: Personal and advertising injury coverage protects against claims arising from offenses such as defamation, slander, libel, or infringement of intellectual property rights committed in the course of advertising or promoting real estate services.
  6. Supplementary Payments: Real estate E&O policies may include supplementary payments coverage, which helps cover expenses related to claims, such as court-ordered judgments or settlements, interest on judgments, and other reasonable costs incurred with the insurer’s consent.