Due to the volatility of the real estate market, many may the view the costs of doing business as a realtor to already be extremely high. Add to that the need to protect oneself from liability issues, and many simply can’t find a way to justify the extra expense of liability insurance. They may feel that as long as they remain up-front with their clients regarding all aspects of those client’s real estate ventures, they’re protected from any sort of liability issues. Yet a lack of liability concerns in the past should not be viewed as protection against future claims. Those who do so may end ruing the day they chose to pass on real estate professional liability coverage.
Facts All Realtors Face
Anyone working in real estate who feels as though liability insurance is unnecessary has forgotten these simple facts:
- Contracts can easily be challenged in court
- Clients won’t hesitate to take action if they see potential losses on the horizon
- Some clients may actually insist that their realtor carries at Errors and Omissions coverage
- Defending oneself in court can be costly
Ultimately, the peace-of-mind that comes from having a real estate professional liability policy could actually prove to be more valuable than the few extra dollars needed each month to ensure such coverage.
With the potential out there for large settlements from liability cases, clients may already come into deals looking for ways to spin them towards a liability claim. Thus, one owes it to him or herself as well as his or her firm to be protected from such legal predation. A real estate professional liability insurance policy will provide just such protection.