Errors and omissions insurance may seem like a complicated insurance policy, but it is simply another term for professional liability insurance. This kind of insurance protects you and your business against accusations from clients that claim you made some kind of mistake. Even if the so-called errors aren’t real, you can still get sued. The following explains the importance of omissions insurance for real estate agents.
Unfortunately, it is nearly impossible to be able to predict future problems. Not to mention that it doesn’t take much for a client to bring an issue against your company and employees. Even if your company is accused of what initially seems like a minor issue, you could still end up paying hefty lawyer fees to clear the lawsuit.
It is also important to know that lawyer fees are not the only bills that can make your fees add up quickly if you don’t have insurance coverage. In addition to paying for a lawyer, you may have to pay court fees, administrative costs, settlements and even more. The combined total costs could be enough to financially ruin your realty company.
Real estate companies and their agents face high risks. It can be hard to know when a potential dispute between a buyer and seller may breakout, which is why it is necessary for your realty company to consider omissions insurance for real estate agents.