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Errors and Omissions Insurance

Member-Brokers who participate in the Errors and Omissions Insurance Program will be issued by a major insurance underwriter an individual Errors and Omissions Insurance Policy, which will include coverage for the member, managerial staff, sales, clerical and licensed real estate independent contractors under contract with member-brokers firm.

Errors And Omissions Insurance - "E & O" - "A professional liability insurance that protects companies and individuals against claims made by clients for inadequate work or negligent actions. Errors and omissions insurance often covers both court costs and any settlements up to the amount specified on the insurance contract.
  In the financial industry, lawsuits will happen, regardless on how baseless the claims may be. Clients sometimes sue an adviser or broker after an investment goes sour, even if the risks were well known and within the guidelines established by the client. In these cases, even if a court or arbitration panel finds in favor of a broker or investment adviser, the legal fees can be very high and E&O insurance is vital in these situations. A person or company that has had numerous litigation problems has a higher underwriting risk and will find E&O insurance to be more expensive or less favorable in its terms as a result." -

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