Real estate agents and brokers deal with distinct challenges when performing their jobs, and even small errors or perceived mistakes can have huge consequences. In worst-case situations, real estate professionals may end up facing professional liability claims and steep associated costs. Fortunately, real estate liability insurance can offer protection against many common claims, including ones that involve the following issues.
- Unknown or Overlooked Information – Real estate professionals may not always discover reasonably available information or properly advise clients of known facts. For example, an agent may not be aware of an underlying problem with a property, such as mold or termites. An agent may also unintentionally misrepresent facts about the property. These missteps may lead to costly claims.
- Ineffective Services – Clients may also make claims alleging that real estate agents or brokers have failed to fulfill their professional duties. Unreasonable delays, inadequate research into a property or substandard advice may provide grounds for these claims.
- Professional Conduct – Real estate professionals may also face liability for other professional actions. For example, agents may be accused of discriminating against clients or making harmful statements about other parties. Claims involving slander, libel or discrimination usually fall within the scope of a real estate liability insurance policy.
Assessing the Available Protection
A strong insurance policy should be able to mitigate these risks and other areas of exposure that real estate agents or brokers face. However, it is usually best for these professionals to speak with an insurance agent about specific professional risks as well as potential solutions to ensure that adequate protection is in place.