Errors and Omissions Insurance for Commercial Real Estate
Our Real Estate errors and omissions insurance (E&O) programs are specifically tailored to each commercial real estate company. Our errors and omissions insurance products help our commercial real estate clients balance operational risk with costs of insuring that risk. Our E&O programs balance our client’s appetite for risk and risk management and address industry specific issues such as:
- Environmental Hazards and Pollution
- Leasing Activities
- Fair Housing
- Property Management
- Continuing Education
- Risk Management Counseling
- Mold Spores and Fungus Growth
Additionally our real estate errors and omissions insurance programs provide coverage for real estate services that are not covered by most real estate E&O policies such as:
- Tenant Representation Services
- Joint Ventures
- Corporate Services
- Owned Property
What is Real Estate Errors and Omissions Insurance?
Real Estate Errors and Omissions Insurance protects a real estate professional from claims relating to an error or omission in providing professional services that can lead to a lawsuit. These suits can result from a sale, lease or property management service as well as tenant representation, consulting or other ancillary services such as appraisals, short term escrow and mortgage brokering. An error or omission can occur on almost any transaction. Our insurance programs help protect real estate professionals from the liability associated with such errors, mistakes or omissions.
Commercial real estate claims relate to practically every area of a real estate transaction. In several instances brokers have been sued because a property failed to achieve a sales or rental price consistent with expectations. One recent claim involving this issue involved a suit for $20+ million. The case was ultimately dismissed against our broker; however, $200,000 in excess was spent defending the claim under appeal. Another similar suit in our office was for $8 million and is still in litigation.
- For an in-depth analysis of business risks to be covered in a Real Estate errors and omissions insurance ( E&O ) policy, click here to read “Are You Really Covered?” by Mike Smith (PDF).
- E&O Check List for Commercial Real Estate Organizations (PDF)
Please feel free to call to discuss your Company’s needs with one of our licensed professionals.