Real estate agents are involved in all areas of their clients’ investments, from property showings to ownership rights. Such a high level of involvement places agents at risk for encountering potentially devastating legal claims. Real estate liability insurance defends these professionals in the face of costly lawsuits.
Clients file claims against real estate agents for a variety of reasons. Most claims are related to the failure to inspect a property, disclose pertinent information, or provide documentation. Agents are also sued for discrimination and libel or slander. There are so many ways to disgruntle a client, and this is why it is important for real estate agents and brokers to secure liability insurance. Who knows when a claim will arise, and therefore it is best to be protected at all times.
If a suit is filed, what are the resulting costs? In truth, they are significant, and agents may not be able to handle the expenses if they are without coverage. Real estate liability insurance assists them in paying defense and settlement costs. It prevents agents from having to carry the financial burden on their own.
Not every client walks away from an investment feeling satisfied. Some feel animosity toward their real estate company, and as a result they file a claim. With real estate liability insurance, agents have a reliable form of defense against such situations.