Real Estate

What Comprehensive Real Estate Professional Indemnity Insurance Should Cover

One of the most demanding markets today is the real estate sector. And this is because, in this particular industry, customer expectations are often difficult and difficult to meet. Typically, real estate agents would find it difficult to fully determine what their clients really want or require based solely on sporadic personal interactions.

Real estate agents are also not safe or immune from legal complaints or lawsuits filed by their clients. Many of these buyers or clients would generally agree or be happy with almost everything about the property and would happily close the deal. However, later, the buyers would complain again about how the property they had bought turned out to be what they did not expect. Such problems can escalate further and in the end, the investors of the property would file a legal claim against the real estate agent.

To prepare for such unfortunate situations and to protect your practice or business, licensed real estate agents and real estate companies should carry professional indemnity insurance. This particular type of insurance provides financial protection to any real estate business or professional against a series of claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of their professional services. By having professional liability insurance, your real estate business can still remain open and continue operations even if a legal claim against your business has not yet been resolved.

Different providers of real estate professional liability insurance offer various types of coverage. And if this is your first time investing in this type of insurance, you need to know the extent of coverage that insurance will provide your practice. Here are some of the civil responsibilities that must be covered by professional civil liability insurance for real estate agents:

• Unintentional libel, including libel and slander
• Breach of professional duty
• Loss, damage or destruction of any document, file or record
• Any bodily or physical injury and property damage claims acquired or caused by a third party
• Claim investigation costs
• Inadvertent infringement of someone else’s patent, trademark, or copyright
• Any expense incurred as a result of attending any consultation

As a licensed real estate agent, having professional liability insurance will give you a certain level of peace of mind. The cash flow of your business will not be seriously affected even if you are in the middle of a lawsuit. And with the help of this insurance, starting over after the legal battle can be easier whether compensation has been required or not, since the personal assets of your business are fully protected.

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