NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
NAR REALTOR Benefits®
Victor Insurance Managers LLC and the National Association of REALTORS® have partnered under NAR REALTOR Benefits® to provide a first-class E&O insurance program to REALTOR® members. Victor is one of the largest and most experienced underwriting managers of specialty insurance programs in the world, serving more than 46,000 policyholders in various specialty industries through independent insurance agents and brokers.
To learn more about Victor’s Real Estate Errors & Omissions Insurance Program, take a look at their program brochurepdf or call 888-429-6638. Be sure to mention that you are a member of the National Association of REALTORS®.
Some state associations also have carriers they recommend (check with your state association for this information). Please see this list for additional Errors & Omission Insurance Providers.
Use of E&O Insurance in Real Estate Firms
Source: 2023 National Association of REALTORS® Profile of Real Estate Firmspdf?_gl=1*75lz2r*_gcl_au*MTEzMzMwODgxMi4xNzAxMjY2NDQ4
E&O Insurance Basics & Considerations for Choosing Coverage
Errors and Omissions Insurance: E&O Explained (Forbes Advisor, Dec. 3, 2024)
“Errors and omissions (E&O) insurance is a form of liability insurance that covers your business against claims of mistakes in professional services, such as services that are late, never delivered or inaccurate. Small business insurance companies may also call this coverage professional liability insurance. If your business gets hit with an errors and omissions claim, you could be facing legal defense costs, including court costs and attorney fees, and paying any settlements or court judgments… Errors and omissions insurance helps pay for all these costs.”
Errors & Omissions Insurance Guide for Real Estate (The Close, Jun. 10, 2024)
“Even the most diligent real estate professionals face legal issues. Whether it’s a missed disclosure, an incorrect property description, or a clerical error, these issues can lead to costly disputes. Real estate errors and omissions (E&O) insurance protects agents and brokers from the financial fallout of errors, oversights, or negligence during property transactions. This coverage is essential to ensure one misstep doesn’t jeopardize one’s career or business. This article discusses what errors and omissions insurance in real estate is, what it covers, costs for insurance premiums, and how to file a claim.”
What Is E&O Insurance? (For Realtors & Real Estate Agents) (Market Leader, Jun. 12, 2023)
“The question of how much E&O insurance you need as a REALTOR® may depend on whether you’re already covered. Unlike homeowners insurance policies, there are no “standard forms” in the E&O world. Each carrier can have very different policies. Often the best solution is to layer two or more policies on top of one another to plug any “gaps” in coverage that may occur during career changes, moves to another state or agency, etc., and after you retire or otherwise leave the industry.” When considering coverage take these things into consideration: settlements, limit of liability, licensing proceedings, and exclusions.
Real Estate E&O Insurance: Understanding the Basics (National Association of REALTORS®)
“NAR's Risk Management Committee has created two documents designed to help real estate professionals better understand their E&O insurance. The first is a comprehensive summary ("Summary") of Real Estate E&O insurance, covering the most important aspects of E&O insurance, such as: who is covered under the policy; types of coverage policy can contain; deductibles; amount of coverage needed; office policies for insurance issues; and strategies for covering the cost of the insurance. The Summary is intended primarily as a tool for brokers who purchase E&O insurance. The second document covers all of the important points contained in the Summary but presents these in a short tri-fold brochure ("Brochure"). The Brochure is intended to help the brokerage educate its salespeople on E&O insurance issues.” Both documents are available for download at the link above.
Risk Management for Brokers
Claims Scenarios (Victor Insurance, 2024)
NAR’s E&O Insurance provider, Victor Insurance, has hundreds of risk advisory resources, including claims scenarios. These claims scenarios lay out errors that occur in the act of doing business and how E&O coverage can help mitigate the risk of loss or further claims for businesses.
Window to the Law: Reduce the Risk of Misrepresentation Claims (National Association of REALTORS®, Nov. 1, 2022)
“Misrepresentation of a property’s condition is consistently among the top claims against real estate professionals. To reduce the risk of a costly misrepresentation claim, it’s essential to be familiar with applicable property disclosure laws.”
Insurance Policies Should be Part of Your Brokerage’s Risk Management (Illinois REALTORS®, Aug. 25, 2021)
“An important part of opening and running a successful real estate brokerage business includes a risk management plan. Risk management includes taking the necessary steps to deal with problems that inevitably occur in running a business. Although not a statutory requirement in all states, one of the wisest decisions a broker/owner can make is obtaining the appropriate insurance coverage for the wide range of potential issues that can arise for real estate brokerages…one unique type of insurance for personal and agency services like real estate is errors and omissions insurance (E&O)…Ideally, E&O policies provide peace of mind to brokers and the brokerages if threatened by lawsuits based upon alleged negligence or mistakes related to providing real estate services.”
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
Complete Book of Insurance (eBook)
It's All Your Fault: A Basic Guide to Personal Liability and Protecting Yourself in a Litigious World (eBook)
Strategic Risk Management: New Tools for Competitive Advantage in an Uncertain Age (Audiobook)
Maintenance and Risk Management for the Real Estate Manager (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
The No-Lawsuit Guide to Real Estate Transactions (New York, NY: McGraw-Hill, 2007)
Risk Hotline for Real Estate: Learn from Actual Agent Experiences Before They Happen to You! (Seattle, OR: Classic Day Publishing, 2005)
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
Share