Whether you are a real estate broker or real estate agents, lawsuits are a very real burden that you may have to deal with. A case of bad advice or a mistake might lead straight to a lawsuit. These lawsuits are costly for one moment’s mistake. This is why real estate insurance is so important for anyone in the real estate agency. When it comes to agents and brokers, here are the coverages that they need in common.
Errors and Omissions Coverage
E&O coverage is a simple but crucial coverage option. Both agents and brokers may need to carry it, though in some cases a broker may carry it for their agents. E&O insurance essentially protects against any errors made that might cost a client money.
General Liability Coverage
General liability is important to every business. If there are clients, guests or other individuals that visit the office, general liability is important. It protects against any claims that might arise and any property damage. Likewise, it can pay for legal fees.
Financial losses from lawsuits are no joke. Anyone in the real estate industry has to consider the potential. When you deal with clients on the regular basis, eventually you’re going to deal with someone angry at your results. This is why real estate insurance is crucial.