These days, every profession demands a certain level of protection from accidents and miscalculations that only the right insurance policy can provide. Real estate is no different. While many options exist, liability insurance for real estate agents is necessary to protect personal and professional interests.
Consider General Liability Insurance
While a real estate agent will conduct most of his business outside the main office, there are times when a client will visit the agent at headquarters. The right general liability insurance policy protects the agent and the business from any lawsuit that may occur if the client is hurt during the visit. This policy can also protect a business from issues involving property damage.
Purchase Professional Liability Insurance
The type of policy is often called errors and omissions coverage because it protects the policyholder from lawsuits that occur because of professional mistakes made during the course of business. Imagine a simple error in paperwork or timing that results in a deal falling through. Your client, whether a buyer or seller, may decide to sue you for damages, especially if the bad deal results in monetary or personal challenges for the client.
Professional liability insurance for real estate agents covers litigation costs, primarily. Lawsuits can cost a lot of money. Even if the real estate agent were to win a lawsuit, the costs could force the closure of a business.