What Is E&O Insurance?

“Errors and Omissions” insurance (aka “E&O insurance”) is a type of professional liability insurance designed to protect real estate professionals, such as real estate agents or REALTORS®, from potential legal claims and financial losses arising from errors, mistakes, or negligence in the course of their professional duties.

E&O insurance coverage doesn’t just protect the agent, broker, or franchise/firm owner. It also protects their clients.

Mistakes are a part of life and can be minimized but never totally eliminated. E&O insurance ensures that even if you do make a costly mistake, there will be enough cash liquidity available to compensate your clients for any damages that may arise.