As real estate professionals well know, real estate liability insurance is key in combating claims of errors or omissions when it comes to helping clients either buy or sell properties.
Speaking to an insurance agent or broker that can help you to understand the risks that you may be facing will better serve you when it comes to dealing with these exposures. This type of information is vital in order to be strategic about the use of your resources in order to ensure your long-term success.
There are many issues in real estate that can lead to claims, everything from not disclosing issues pertaining to the property to failing to provide documents on time. For example, if you failed to advise a buyer about pollution or bacteria related to the property you may very well end up being sued. Ensuring that you purchase this type of coverage beforehand can help protect you and by having this coverage, you’re not subject to sub-limits or exclusions for neglecting to advise on those damages.
Expansion of services can be risky
Like many professionals, most real estate agents, are closely tied to their communities and often build their reputations by serving customers within a specific area. Therefore they need to maintain a standard of excellence that translates into continued success. While being flexible may help real estate agents expand their practices into other areas, it can also lead to new risks.
If you were to undertake in some expansion of your current business, you must also learn to manage the new exposures you may be facing, and realize that, without the right coverage in place you may be putting your professional and personal financial future on the line.
Even agents who have had prior experience offering additional services may face new, unforeseen exposures. Agents adding to their repertoire for the first time are likely to be unfamiliar with current procedures, methods, issues or regulations that can have a dramatic effect on their plans.
What’s more, if you’re busy serving a number of clients, you may be hard pressed for time and may not, for example, take some necessary training classes and that could lead to further professional and personal risks. Don’t become victim to the threat of a lawsuit; buy real estate liability insurance in adequate amounts to protect you from becoming a target of litigation related to any new services being offered.