The world of real estate is very unpredictable. And so, it is really better to know some ways to protect real estate agents. One excellent way of doing so would be to invest in professional indemnity insurance.
Professional indemnity insurance for real estate agents protects you, the agent, from any civil liability for claims made by third parties, due to the conduct or actions of the business. This action may have caused damage or loss. Some lawsuits may involve breach of contract, breach of statutory provisions in laws, and allegations of misrepresentation, among a host of others.
Professional indemnity is a good investment not only because it is currently mandatory, wherein the government now requires licensees qualified under the Property, Stock, and Business Agents Act 2002 to maintain a $1 million indemnity insurance, with a number of set policy inclusions.
– It is a good investment because it is also a critical means for financial protection when confronted with claims that allege certain misrepresentations or mismanagement. In the event of such potentially ruinous lawsuits, the real estate agent insurance policy you have chosen should allow you to protect your assets, and, of course, your business. Asset protection is especially important when you’re running a startup.
– This kind of insurance can also protect you, long after you’ve retired or closed your real estate company. This applies to policies that come with run off coverage. Run off coverage takes care of claims made years after your company has stopped operating.
– With coverage like this, you can certainly go about your life after closing shop and still be able to achieve total peace of mind even with the threat of a lawsuit for services you have rendered years before. But the right insurance, real estate agents like you must know, is not just going to provide financial and asset protection. It can also encourage potential clients to obtain your services.