1. What is E&O Insurance for Real Estate?

E&O (Errors and Omissions) insurance protects real estate professionals from claims of negligence or inadequate work. It covers legal costs and damages awarded in lawsuits alleging mistakes in professional services.

2. How Does the Calculator Work?

The calculator uses the E&O insurance cost formula:

Where:

• \( Premium \) — Insurance rate per $1000 of coverage
• \( Coverage \) — Total coverage amount desired

Explanation: The premium rate is multiplied by each $1000 unit of coverage to determine the total annual cost.

3. Importance of E&O Insurance Calculation

Details: Accurate cost estimation helps real estate professionals budget for this essential coverage and compare policies from different providers.

4. Using the Calculator

Tips: Enter the premium rate (per $1000 of coverage) and your desired coverage amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect E&O insurance premiums?
A: Premiums vary by location, claims history, years of experience, and the specific services you provide.

Q2: How much coverage do I need?
A: Typical coverage ranges from $100,000 to $1 million+, depending on your business size and risk exposure.

Q3: Are there deductible options?
A: Yes, higher deductibles typically lower your premium but increase out-of-pocket costs when filing a claim.

Q4: What's not covered by E&O insurance?
A: Intentional wrongdoing, criminal acts, and general liability claims are typically excluded.

Q5: How often should I review my E&O coverage?
A: Annually, or whenever your business circumstances change significantly (e.g., adding services or employees).