One of the most demanding markets today is the real estate industry. And this is because in this particular industry, client expectations are usually hard and tricky to meet. Realtors would usually find it difficult to fully determine what their clients actually want or require based on sporadic personal interactions alone.
Real estate agents are also not safe from or immune to legal complaints or lawsuits filed by their clients. A lot of these buyers or clients would usually be agreeable to or happy about pretty much everything about the property and close the deal happily. However, later on, the buyers would come back to complain about how the property they have purchased turned out to be what they did not expect. Such issues can further escalate and in the end, the property investors would file a legal complaint against the realtor.
To prepare for such unfortunate situations and to protect their practice or company, licensed realtors and real estate companies need to have professional indemnity insurance. This particular type of insurance provides financial protection to any real estate firm or practitioner against a number of claims for alleged negligence or breach of duty which arose from an act, error or omission in the performance of their professional services. By having professional indemnity insurance, your real estate business can still remain open and continue its operations even if a legal claim against your company has still not been settled.
Different providers of real estate professional indemnity insurance offer various kinds of coverage. And if it is your first time to invest in this type of insurance, you have to know the extent of coverage the insurance will provide your practice. Below are some of the civil liabilities that the professional indemnity insurance for real estate agents should cover:
• Unintentional defamation, including libel and slander
• Breach of professional duty
• Loss, damage or destruction of any documents, files or records
• Any bodily or physical injuries and property damage claims acquired from or caused by a third party
• Claims investigation costs
• Unintentional infringement of another person’s patent, trademark or copyright
• Any expenses incurred resulting from attendance at any inquiry
As a licensed realtor, having professional indemnity insurance will give you a certain level of peace of mind. The cash flow of your business won’t be seriously affected even if you are in the middle of a lawsuit. And with the help of this insurance, starting anew after the legal battle can be made easier whether compensation was required to be granted or not, since the personal assets of your business are fully protected.