For just about any professional services business in the Lone Star State, making mistakes simply comes with the territory, but this becomes a serious issue when a mistake leads to litigation. While no one sets out to give poor advice, it happens from time to time, or simply by forgetting to sign an important document (that affects the closing on a client’s new home) can have devastating consequences, and unfortunately these types of errors often due occur.
Regardless of whether a mistake was made by accident or due to intentional neglect, most businesses need errors and omissions coverage from NewMark insurance in Austin to protect their companies. By choosing to forgo purchasing a professional liability insurance policy an agency is putting their financial future at serious risk.
Real Estate agents and E&O coverage
An errors and omissions policy protects intangible valuables such as advice and ideas. Let’s say that you’re providing real estate advice to a client and, for whatever reason the deal falls through, then there’s a real possibility that the client may blame their loss on your bad advice. They may even have evidence of your mishandling of the paperwork.
These are instances where the client may decide to take the matter to court to recoup actual and perceived financial losses. By having an E&O policy, the insurance company will cover most costs connected to the trial, as well as any judgments awarded to the other party. This is a valuable type of protection that most businesses would be foolish not to have, plus many clients will not work with real estate agents that are unable to produce proof of professional liability coverage.
While it’s true that many large real estate firms are already covered by E&O insurance policies that doesn’t mean that individual agents don’t need their own coverage. In fact, since that coverage may be minimal it’s really up to agents to protect their own financial futures.
To find the right errors and omissions insurance coverage, look no further than NewMark Insurance in Austin. With their experience with professional liability coverage, they can be vital in helping you to choose the right insurance products.