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.