Errors & Omissions (E&O) insurance is a specific form of professional liability coverage that covers mistakes made by professionals on behalf of another party.
In the Real Estate industry, E&O insurance can specifically cover failure to disclose facts to a consumer or facts misprinted in documents, where the agent is held responsible even if the mistake made was unintentional. Coverage can include legal defense costs and will pay for any judgments against the covered party, depending on the coverage stated in the policy. E&O can extend to both W-2 employees and 1099 subcontractors. Typically, it is worldwide in scope, covering claims made while the policy is in effect.
Errors & Omissions coverage is generally not included in a commercial general liability policy. Contract performance, errors made in a professional setting and liability issues must be covered separately by professional liability insurance. Every insurance portfolio carried by a professional real estate broker should include an E&O policy.
In many states, E&O insurance is required by legislation. It is important to know which states require specific coverage and the sources for obtaining coverage.
E&O Protection Plus
E&O Protection Plus provides you with dual protection from liability caused by both title errors and theft or misappropriation of escrow/settlement funds by your employees. It's double protection for Stewart-issuing agencies without doubling the price.
Why Stewart E&O?
Stewart Specialty Insurance Services offers E&O insurance underwritten by a variety of highly rated carriers with many years of experience in the liability coverage field. While continuing education requirements, increased disclosure requirements upon sellers and tort reform trends are easing the burden of the real estate broker, a lawsuit can easily bankrupt a company - or in the least, can cause a well-earned good reputation to be damaged by a single careless mistake.
When a demand letter is received, our knowledgeable claims counsel is available to consult with the policyholder to determine the coverage and how best to reply. Our goal is to resolve the demand as quickly and painlessly as possible.
Contact Stewart Specialty Insurance at 866.845.4676 for information on this important category of professional liability coverage.