Running a real estate business can be both challenging and rewarding. There are few things more fulfilling than helping a client find the ideal property for their personal or professional needs, or sell their property to the right buyer. However, along with the rewards come significant risks, which is true for practically any industry. Even the most careful and attentive real estate firms and professionals sometimes make mistakes — and those mistakes could cost them a significant amount of money if they do not have real estate professional liability insurance.
Common Claims Faced by Real Estate Professionals
Professionals working in the real estate industry are often faced with the following types of liability claims:
- Failure to recommend a reasonable price
- Failure to disclose material facts
- Delays in transaction closing
- Slander or libel
- Failure to make accurate reports or provide documentation
- Failure to thoroughly inspect a property
Real estate professionals simply cannot predict when they may face an unexpected lawsuit due to a real or perceived error. A comprehensive real estate professional liability insurance policy is essential if real estate businesses want to keep themselves protected from catastrophic financial loss.
Professional liability coverage can take care of legal defense costs and indemnification so that one claim does not take your entire real estate business down. If you do not currently have reliable real estate professional liability insurance coverage, talk to an insurance agent today and secure a policy.