If you are in the market for a full insurance coverage package for your real estate agency, you have likely come across professional liability insurance. Perhaps you already even have this coverage, but have never truly understood its implications. Real estate professional liability insurance constitutes a key component of any real estate agency’s coverage plan, precisely because it covers one of the largest liabilities facing real estate agents: the possibility of errors and mistakes in the services they provide.
There are various mistakes that a real estate professional can make while on the job, but those pertinent to this coverage are specifically those that jeopardize the assets of their clients. For example, a real estate professional could advise their client to offer an unreasonable price on a home, or fail to disclose information regarding asbestos in the house. If a client is displeased with the service provided and feels they have grounds for an errors and omissions claim, an uninsured real estate agency could end up paying a small fortune in compensation. Proper professional liability insurance ensures that real estate companies are covered against these claims.
The stakes for real estate are so high that it behooves real estate agencies to get all the insurance coverage they need, particularly in the form of real estate professional liability insurance. Otherwise, the business could take a real financial blow in the event of an especially costly claim.