With many corporations transferring their headquarters to the DFW metroplex, the real estate market has taken off, which has made it a great time to be a real estate agent! But with the influx of buyers and sellers comes the likelihood of agent mistakes. Without a comprehensive errors and omissions (E&O) policy real estate agents are placing their current and future earnings in jeopardy.
While the State of Texas does not require real estate agents to carry their own E&O insurance, it is highly recommended that they do so for best protection. The assumption that the real estate firm’s E&O policy will provide adequate protection for its agents is dramatically incorrect because each agent within the firm shares the policy limits. This fact alone is extremely unsettling, especially for those agents housed in large firms. Furthermore, if an agent only has E&O protection through his/her firm then switching employers could leave the agent vulnerable to claims while at the previous firm.
The benefits of an individual E&O policy far outweigh any policy costs, which by the way are surprisingly inexpensive. Individual polices can offer broader coverage than the agent’s firm’s policy and can provide coverages issues like network information and security offense, open house injuries/property damage, failure to disclose pollution issues, and coverage for discrimination (to name a few).
As a real estate agent in this ever-expanding DFW market, make sure you protect yourself from unexpected litigation costs resulting from your real estate business. Contact BrookStone Insurance Group for more information regarding errors and omissions insurance for real estate professionals.