Mistakes happen every day. Sometimes they are harmless, but other times they give rise to a mess of consequences. This is why it is so important for realtors to have real estate liability insurance. Such a program protects them in the event they are sued for errors they made on the job.
Why Do People File Claims Against Real Estate Agents?
Claims are brought against real estate agents for a number of reasons:
- Failure to provide documentation
- Failure to inspect a property
- Failure to disclose pertinent information
- Libel or slander
Though many claims are proven to be unfounded, it is still a good idea to secure some level of real estate liability insurance. Legal and settlement costs are often immense, and agents could be financially ruined if they do not have insurance.
Reasons to Secure Liability Insurance
There are several other reasons why agents need liability insurance. First, more clients are requiring agents to secure coverage. Not having insurance risks the loss of professional opportunities. Second, an agent’s contract can offer only limited protection when it comes to lawsuits. Finally, an insurance program is cost-effective and capable of offering financial security to a real estate company. Real estates agents should not disregard the benefits of having liability insurance. Claims can arise at any time, and being unprepared could easily lead to financial and professional ruin.