North Carolina Real Estate Errors & Omissions
North Carolina Real Estate E&O Requirements
Whether you own a residential real estate agency in Charlotte, focus on Raleigh commercial real estate, manage a property management firm outside of Greensboro, or specialize in luxury real estate in Cary, a quality North Carolina Real Estate E&O policy is critical to the protection of your firm.
In states such Tennessee, Louisiana, and Kentucky, real estate errors & omissions coverage is actually mandated. While real estate errors & omissions insurance is not required for real estate agents in NC, most franchises require firms purchase and maintain coverage. Independent firms generally want to carry coverage for peace of mind and protection in the event of a lawsuit.
Real estate errors & omissions (E&O) varies widely from company to company. Many policies exclude some claims that are common for real estate brokers. Below are some of the most important E&O coverage issues in NC to be aware of.
Are North Carolina E&O Policies Really Different?
Professional liability (E&O) in real estate is a specialized insurance product that many North Carolina insurance agents do not fully understand. Real estate E&O coverages vary widely.
For example, many real estate E & O policies exclude claims for contingent bodily injury and property damage. Some other policies only offer limited coverage for these claims. What does this mean for brokers? If an agent sells a house and the homebuyer later sues for failure to disclose mold, any property damage for remediation or bodily injury for sickness and medical costs would be excluded under most E&O policies. Dog bites and trip and fall lawsuits would also be excluded if the lawsuit alleged they were due to the real estate agent’s failure to perform their professional duties as a real estate agent.
A strong North Carolina professional liability (E&O) policy will include full limits of coverage for contingent property damage and bodily injury (BI/PD).
Many other errors and omissions policies in NC exclude or limit coverage for copyright or trademark claims, the purchase of property by an agent, the sale of agent-owned land, residential or commercial property, fair housing violations, escrow claims, and property management activities.
Get E&O Options from FirmSecured
If you are ready to review your current E&O coverage for these gaps and other potential issues, our team is ready to help. We spend time with you on Google Meet, understanding your current policy and needs. We will help you find multiple E&O options to put on the table for your firm, and compare them to your current policy.
Ready to Get Started on North Carolina E&O Options?
If you are ready to get E&O options, fill out the form below to have our team reach out.
If you would rather schedule time directly on Google Meet, you can book time here.
FirmSecured is powered by Veritas Risk Management, an independent insurance agency in Northeast Tennessee.
North Carolina Cyber Insurance
Defense against 3rd party wire fraud is critical for NC real estate firms
In recent decades, we have seen a sharp increase in wire fraud, funds transfer fraud, and other cyber crime. Cyber criminals are hacking into real estate agent’s emails to learn the details for real estate transactions and closings. They can then send emails to homebuyers, posing as the agent, with fraudulent wiring instructions. Funds transfer liability (3rd party wire fraud) is not covered under E&O, but rather under a standalone cyber insurance policy. Learn more about NC cyber liability insurance coverage for real estate agencies.
NC General Liability Insurance
Cyber, E&O, and General Liability Solutions under 1 roof
Most real estate E&O policies require that agencies also purchase and maintain general liability coverage. Brokers who trust our team with their cyber liability and errors & omissions coverage generally prefer having one insurance agent for all of their liability coverage. That’s one reason we can provide general liability for your real estate firm. When you reach out about E&O coverage, just let our team know you would also like to consider general liability options.
