Get more information about Errors & Omissions Coverage from the experts at Axis Insurance Services, one of the largest independent writers of Real Estate Agents and Brokers E&O in the business.
Protect Against Negligence or Oversight Claims with Errors & Omissions Insurance
Real estate agents and brokers need Errors & Omissions (E&O) policies that adequately address their risks. Properly customized E&O insurance will address risks relevant to specific exposures faced. The E&O experts at Axis Insurance Services will create a custom solution that addresses your risk profile.
As a national leader in Professional Liability insurance, we have longstanding relationships with top-rated carriers. We are able to serve the E&O needs of a broad spectrum of real estate professionals.
First Dollar Defense
Limits up to $100M
Independent Contractor Coverage
Owned Property Coverage
Joint Ventures / Syndications
Errors & Omissions (E&O) Insurance can provide coverage for your company in the event of a lawsuit brought against it for claiming negligence in providing or failing to provide your professional services. Below are the most common claim scenarios.
A plastics manufacturing company engaged a real estate agent to locate a premises that would accommodate new equipment it was purchasing to expand its business. The real estate agent reviewed the company’s expansion plans and intended use of the premises, located a facility and assured the company the premises would be suitable for their needs. After executing the lease, the manufacturing company proceeded to purchase $975,000 worth of equipment. Several months later, the county planning and zoning department determined that the proposed use of the premises was prohibited by the zoning classification for the site. The company sued the real estate agent and was awarded $1.2M in damages.
Breach of Duty
A retired couple engaged a real estate agent to locate space that would be suitable for an ice-cream shop they intended to open. Since the couple had a limited advertising budget, they wanted a location that would generate significant walk-in traffic. Two months after opening the ice-cream shop, the county began a sewer line restoration project and closed off access to the street where the shop was located. When the shop failed, the couple sued the real estate agent for failing to advise them of the pending municipal project that closed their street. The couple was awarded $672,000 in damages.
Failure to Disclose
A real estate agent was engaged by the heirs of a large, upscale suburban home to list the home for sale. The competitively priced home sold quickly to a family with children who were relocating to the area. Several months after the closing, the buyers learned that the home was the site of a gruesome murder-suicide. The buyers sued the listing agent for failing to disclose the events that had taken place at the property. In the end, the listing agent won the case but only after many years of litigation. Although there was no judgment, the legal defense for this case cost thousands of dollars and was covered by the E&O policy.
A commercial real estate agent inadvertently failed to re-engage a security alarm after showing a property. Subsequently, over $500,000 worth of equipment was stolen or damaged from the unsecured building. The property owners’ insurance company paid their claim and then sued the real estate agent to recover their damages. This matter is still pending.
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