Posted on: January 29, 2026 by Huntersure
Are fast-moving deals causing slow-burning liability issues? During peak listing season, real estate professionals often juggle more listings, offers, and closings than usual. It’s easy to assume that routine transactions carry routine risk. In reality, volume and speed increase the chances of small mistakes that can lead to costly claims. That’s why errors and omissions (E&O) insurance for real estate professionals becomes even more important when the market heats up.
When business picks up, agents may move quickly and skip steps that usually feel routine. But speed can lead to gaps in documentation or communication. If a deal unravels or a buyer feels misled, those gaps are where E&O claims begin.
For instance, imagine a buyer walks away after learning the HVAC system is older than expected. The agent says it was discussed, but it never made it into the final disclosure. Now it’s one person’s word against another’s. If the buyer alleges financial loss, a lawsuit could follow.
Whether or not a policy will respond depends on how the act occurred, whether it was within the agent’s licensed real estate duties, and the specific terms and exclusions of the E&O policy. Most policies will not cover intentional misconduct or acts outside the scope of a real estate license.
Most professionals understand the importance of disclosures. The risk lies in how they’re handled.
Agents may reuse checklists or templates from one deal to the next. But if a property’s condition has changed or a seller omits critical information, those documents might fall short. A missed reference to prior water damage or a new zoning restriction could lead to a claim if the buyer alleges they weren’t informed.
It’s also common to believe a verbal update or casual email is enough. However, without proper written documentation, proving the disclosure occurred becomes difficult. And while E&O insurance may assist with defense costs, policies typically exclude claims involving known but undisclosed issues, intentional misrepresentation, or unlicensed services.
Furthermore, seasoned brokers warn that agents who act like home inspectors or attorneys increase risk for the entire brokerage. Coverage may not apply if agents cross into duties outside their license, such as offering legal interpretations or home inspection advice.
During busy seasons, clients often expect quick turnarounds. But delays are inevitable. When expectations around closing timelines, repairs, or property features aren’t clarified in writing, misunderstandings can escalate quickly. And if there’s no documentation to support the agent’s position, the risk of a claim increases.
To reduce exposure, agents should set expectations early, confirm major conversations in writing, and follow up consistently. These habits not only reduce ambiguity but also provide a stronger defense should a dispute arise.
Moreover, it’s critical to remember that E&O policies are typically “claims-made,” meaning the policy must be active when a claim is filed, not just when the act occurred. Delayed reporting can impact coverage. Also, many E&O policies exclude fines, penalties, and services outside the covered scope — all of which are common issues during high-pressure periods.
Busy seasons don’t just bring more business. They bring more risk.
When listings move quickly and agents manage multiple transactions at once, timelines compress and the margin for error narrows. A missed addendum, an incomplete disclosure, or a follow-up that never makes it into the file can escalate into a formal allegation of negligence once a deal closes.
Even when claims lack merit, the cost of defending them can be substantial. That’s why errors and omissions insurance for real estate professionals should be part of a larger risk-management strategy. These policies help cover defense costs and damages when a covered error, omission, or act within the scope of real estate duties leads to financial harm.
At Huntersure, we understand industry-specific exposures. Our E&O program offers real estate professionals tailored protection during high-volume, high-pressure listing periods.
Coverage includes support for:
With primary and excess limits available up to $5 million and program access in all 50 states, Huntersure provides real estate professionals with the tailored coverage needed to stay protected, especially during peak season.
Need help reviewing E&O coverage before your next wave of listings? Contact us today to get tailored support for your clients or to quote coverage that aligns with how real estate deals actually unfold.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: E & O Insurance Errors & Omissions Insurance
