Getting insurance is an important part of life. Whether in your personal or professional life, the right insurance can keep you afloat in hard times. If you are a real estate agent, one policy you need to have is real estate liability insurance. There are a few things that this type of insurance can do for you.
Financial Coverage in Event of Lawsuit
The main function of real estate liability insurance is to cover you financially in the event that you are sued by one of your clients. If a client alleges that you gave them incorrect information, delayed their closing, mislead them or any number of other situations happened, they can hit you with a potentially very costly lawsuit. Whether the allegations are true or false, you insurance will cover both the settlement and legal fees.
Peace of Mind
Having insurance gives you the peace of mind necessary to get your job done. Without insurance, you could spend your days worrying about everything that could potentially hurt your career. The right policy allows you to relax and do your job without constantly thinking about the consequences.
Getting the right real estate liability insurance is crucial to your professional success. Having the right insurance gives you the peace of mind necessary to get your job done without worrying about every little thing that could go wrong.
Brokers and independent agents often have to cover a lot of startup expenses. There are the licensing fees, the cost of technology and securing a business location, and much more. The cost can be daunting, but one expense that you might not be benefited by skipping over is E&O insurance for real estate agents. Despite your best efforts, you may never know when a claim will come against you. The cost of covering that claim may do big damage to your personal and business finances, even if you are found innocent.
E&O insurance for real estate agents is a policy that provides financial coverage in the event of that a lawsuit involving professional negligence is brought against you. Such a claim can arise from even the simplest matters, such as a mistake on paperwork, or the client thinking that you did not do your absolute best in getting them the best price on their sale or purchase. As a result, even agents that use the greatest possible care in their work may still end up having to face being dragged into court. The expense of the legal fees can be minuscule in comparison to the cost of being insured.
Finance is a delicate matter in almost every business. Having E&O insurance is one way brokers and real estate agents can help to ensure their own financial stability.
As a realtor, you work tirelessly to help meet your client’s needs. Yet your clients may not always recognize the value of that work. They typically have a lot of money and personal and/or professional interests tied up in their deals. If and when those deals go south, you’re often viewed as the reason behind the failure. Thus, having real estate professional liability insurance becomes less of a luxury for you as a real estate professional and more of a business necessity.
Real estate professionals face liability issues from all sides. Those operating in any of the following fields may find themselves to be particularly at risk:
- Commercial and residential properties
- Property management
- Property preservation
The Protection Professional Liability Coverage Provides
A general liability policy often won’t provide you or your firm with coverage against all of types of scenarios. In fact, many are remarkably limited in the amount of protection they provide. Fortunately, a real estate professional liability extension will offer special coverage for almost any and all unforeseen scenarios, including:
- Network and information security
- Property damage
- Bodily injury
- Crisis event expenses
Plus, with this extension, you get the added assistance of an insurance professional to provide any claim and pre-claim assistance.
While you certainly never plan to encounter difficulties with any of your clients or their real estate deals, real estate professional liability insurance has to be viewed among the cost of doing business in today’s litigious society. Ultimately, you can’t afford to not surround yourself and your firm with this added layer of protection.