Reduce your E&O Liability
March 2, 2026
In today’s real estate environment, protecting your business isn’t optional—it’s essential. While Platinum Realty provides brokerage-level Errors & Omissions Insurance coverage to safeguard agents, individual habits and documentation can make a significant difference when it comes to reducing liability, and even lowering an agent’s share of E&O costs in the event of a lawsuit.
Prevention Measures
Use Approved Board & Platinum Realty Form
Only use board approved forms as we are not trained to use external forms, advise buyers and sellers to seek legal counsel for any questions regarding these.
Encourage Professional Inspections
Strongly recommend that buyers obtain a professional inspection. If a buyer refuses an inspection , send a cautionary email outlining the associated risks.
Acting as Both Principle and Agent
You must disclose any time you have a financial interest in the transaction or provide services to the property
Warranty -Included or Waived
Transaction must include a warranty provided in the purchase agreement, or it is waived in writing with a buyers signature . **Learn more about United Home Protection’s home warranty & increased E&O coverage when you waive warranties through their system!
Claim Reporting Procedures
Timely Reporting of Claims
Coverage is only applicable if a potential claim is reported immediately after becoming aware of the issue. This does not start a legal process, and many times never evolves into anything, but if we do not report and there is a claim in the future we could be denied coverage
Exclusions
Fraudulent acts committed by the agent are not covered
Coverage Scope
Coverage applies to the company and the agent not the buyer or seller. Additionally your contribution will be reduced if all preventative measures were incorporated
Claim, Demand and Lawsuit Process
Initial Reporting
Once a claim is reported, an attorney will be assigned and the Broker will send an email outlining the process and requesting all relevant documents and communications.
Restrict Communication
Do not discuss the claim, demand or lawsuit with any parties outside of the legal/Brokerage team
Court Proceedings
If the case proceeds to court, all parties involved may be required to participate in depositions. Depositions involve answering a a series of questions from attorneys on both sides in preparation.
The bottom line? The best way to lower your share of E&O costs is to lower your risk in the first place. Strong documentation, professional boundaries, and consistent communication not only protect you in the event of a lawsuit—they also elevate your reputation and client experience.
Support, ideas, comradery. The Platinum Professional Network is made up of Platinum agents in your area just like you. Agents who thrive as entrepreneurs, but also know there is strength in numbers. So, share your strikes and gutters while throwing strikes and gutters. Or, soak up other agent’s tips at one of our happy hours. Regardless of the event, you’re bound to make connections and leave with new ideas to your help grow your business.
For families caring for a child with a serious illness, life is turned upside down. Long hospital stays and uncertainty become the new normal. This is especially true for the families caring for critically ill children when even basic necessities like meals can become burdensome. Feeding Families was started with the goal of providing lunch daily to these families, so they can focus on the most important job of all – caring for their sick children.