Real estate agents must purchase coverage that protects them against financial losses from lawsuits filed as a result of any work they perform. Errors and omissions coverage can be acquired from those selling Insurance in LA and is the policy that addresses these concerns. Often referred to as real estate liability insurance, it is a type of malpractice insurance carried by most real estate agents.
Fortunately, E&O coverage provides defense against claims from buyers or sellers that determine that the agent did not proceed properly in managing their affairs. The policy also pays any settlement or judgment against agents up to the limits of liability stated in the policy. As a real estate broker, you probably carry out your duties to the best of your ability, but you may still be at the risk of facing one or more claims.
Not every E&O policy is the same
While E&O policies cover claims that come about due to errors, omissions, or negligence in regard to your duties as a real estate agent, policies can differ from one insurer to the next. When deciding on which type of policy you should purchase, you can use a few basic ideas about the standard types of coverage that are available. Keep in mind that there are likely to be exclusions listed in these policies, including:
- Claims resulting in dishonest or criminal acts by an agent
- Claims against agents causing bodily harm or death to another person
- Claims associated with polluted property, and
- Claims arising from damage an agent causes to someone’s property
It’s vital to keep accurate records of all transactions, as well as keeping records of all phone conversations that discuss anything pertaining to a sell or purchase. A buyer may decline to purchase home warranty protection or decide against doing a home inspection, even against your recommendations. Write anything of this nature down and put it in a file in case the issue comes up later.
Ask your buyer or seller to sign a declaration anytime that you recommended a specific action. If your files contain a signed waiver, it will be difficult for you to be held responsible for any problem related to that waiver. Document as many facts as possible during all real estate transactions. Always carry real estate liability Insurance in LA as the best protection against mistakes you make, along with any false accusations that could possibly damage your reputation.