What is E&O Insurance?

E&O Insurance is protection against negligent acts and/or omissions resulting in personal injury, bodily injury and/or property damage liability to a client.

Specific examples for real estate E&O insurance include:

  • Error: An MLS listing for a home that has incorrect square footage without the sales associate’s knowledge.
  • Omission: Similar to above, however, the sales associate is aware of the discrepancy and does not disclose the information to the buyer.

In either example, the buyer could sue the sales associate or the real estate agency, and an E&O policy may provide protection.

Why do I need Real Estate Errors and Omissions Insurance?

E&O Insurance is protection against negligent acts and/or omissions resulting in personal injury, bodily injury and/or property damage liability to a client.

With real estate transactions becoming increasingly complex and with frivolous lawsuits being filed, it is critical that all real estate professionals carry reputable E&O Insurance. In fact, if you are a franchisee of a major real estate company, E&O Insurance may be required.

If you are sued and a judgment is awarded or a settlement is reached, defense costs and payouts could be hundreds of thousands of dollars. E&O Insurance can protect you, your sales associates, your reputation and business finances. For a complete explanation of the benefits of E&O coverage, please call (877) 627-1244.

Who should have E&O Insurance Coverage?

All real estate professionals should have E&O coverage. If you are a broker, E&O Insurance can cover your entire firm, including all the sales associates in the office. HMS offers E&O policies for real estate professionals as well as home inspectors, appraisers, auctioneers, mortgage brokers and bankers, property managers, title agents and title abstractors.

How do I request an E&O Insurance quote and how long will it take?

You can request a quote by answering a few quick questions online. In just a few minutes your request will reach a Risk Specialist, and in 24 business hours you will be contacted by phone or email.

Will an E&O insurance policy be created to fit my needs?

Of course. We customize each E&O insurance policy to fit your needs. Waivers and deductible options, as well as payment plans are available. You may also elect to add special endorsements in order to cover items that are typically excluded, such as properties that are owned and sold by a real estate agency.

What does Errors and Omissions Insurance cover?

E&O Insurance may cover your defense in a lawsuit, while also paying for judgments or settlements per the policy limits. The insured may be responsible only for the E&O policy deductible. Please contact us for more details.

What is first dollar defense?

When an E&O policy has first dollar defense, the E&O insurance policy pays for the legal defense, and a deductible is required only in the case of a settlement or liability judgment. Without first dollar defense, a deductible might be required.

Why should I choose HMS for my E&O Insurance coverage?

HMS is one of the original and most respected names in E&O Insurance coverage — as well as home warranties.

We’ve provided E&O coverage to thousands of real estate offices and tens of thousands of sales associates nationwide. In fact, our exceptional reputation and service has enabled us to become a preferred supplier of E&O Insurance to many prestigious real estate companies.

HMS has served a number of clients for a decade or more, and is known for offering competitive coverage and rates. For over 25 years, we have been able to do this by successfully partnering with many of the leading A and A+ rated underwriters. Our history and relationships allow us to provide cost effective customized real estate E&O insurance policies based on our clients perfect or imperfect claims history and risk management preferences. For all these reasons, working with HMS is the right choice.

What other types of insurance products does HMS offer?

In addition to E&O Insurance coverage, HMS offers General Liability, Property and Business Owners Package (BOP) in many states.

General Liability covers an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a business. Coverage also applies when someone is injured as the result of the general operation of a business.

Property Insurance, however, protects the physical property and equipment of a business against loss from theft, fire or other perils.

Business Owners Insurance covers Liability, Property and Business Interruption Insurance. For more information on any of these insurance options, please call (877) 627-1244 or request a quote.

How long does it take to get an insurance quote bound?

Not long at all. Once you receive your insurance quote from HMS and approve it, you will generally receive the binder via email the same day payment is received.

What is a claim, and how should I handle such an occurrence?

If anyone makes a request for money or services, it can be considered a claim. An example of this would be if you receive a subpoena to appear in court or you are asked to respond to a lawsuit. In fact, something as simple as receiving a phone call or a letter from a displeased client requesting money or services constitutes a claim.

If you are our client and this has happened, please call the toll-free number that was included with your insurance policy and speak with the underwriter’s claim representative. The representative will answer questions and walk you through the claims process. If you have any additional questions, we’re here for you, and you can contact us for personalized service at (877) 627-1244.

Can I afford E&O Insurance coverage?

You can’t afford not to have E&O Insurance coverage in today’s litigious real estate market, where home and property sellers and buyers are constantly under pressure. An E&O premium starts at only $500 per year, and we focus on creating cost effective solutions for your needs.

Additionally, in order to make the premium easier to pay, we can assist in creating a payment plan. We also offer Transactional E&O Insurance in many states. This offering provides the same coverage and benefits as an annual policy, but payment is on a deal-by-deal basis, eliminating an annual payment.

What is a deductible waiver?

Insurance companies may reduce or waive a deductible payment up to $5,000, if certain conditions are met. Contact a risk specialist at (877) 627-1244 for specific details.

Coverage for E&O is not available in all states and is subject to underwriting approval and actual policy language.