Realtors, Brokers and other real estate professionals are not strangers to lawsuits and accidental errors. There are several reasons why you need professional liability for real estate professionals.
Lawsuits are Expensive
No matter what type of lawsuit it is, win or lose, it will cost you a significant amount of time and money. Even the most frivolous suits can be expensive. Liability insurance covers your defense expenses.
Contracts Don’t Cover Everything
Although a good contract covers a lot, it won’t cover every possibility. You may need help defending your contracts against challenges.
Some Clients Require It
You could be missing out on important potential business if you do not have professional liability insurance. Some larger clients require errors and omissions coverage, as well as substantial liability coverage.
Some Risks Are Unpredictable
You cannot predict when something that you might be liable for will happen. Since some events are unpredictable, it is better to have the protection you need ahead of time.
Your Reputation Is Everything
Professional liability insurance can cover you in the event of libel or slander. Libel (written defamation) and slander (spoken defamation) can seriously harm your reputation and, therefore, your business.
As with any insurance, liability is better to have and not need than not have it when you need it. We live in a litigious society, and this insurance can help protect you from lawsuits against you and your business.