There there is no aspect of the real estate business that is free from the risk of lawsuits. To protect themselves from the potentially devastating costs of legal fees and settlements, real estate professionals should invest in real estate E and O insurance.
Real Estate Professionals
There are many job titles in the real estate industry. Examples of professions that would benefit from errors and omissions insurance include the following:
- Commercial and residential real estate agents
- Property managers
- Mortgage bankers
- Title agents
- Escrow agents
Types of Lawsuits
Whenever clients feel that they lost money or were disadvantaged in some way, their first reaction is often to sue. Developers, property managers, and others within the industry are also prone to bring claims. Here are some examples of types of lawsuits:
- Environmental hazards
- Leasing disputes
- Property management regulations
Errors and omissions insurance alleviates the financial burden of legal representation. Avoidance of this cost alone makes paying an increased monthly insurance premium a sound investment. If found guilty of negligence, insurance also covers the additional costs of paying clients for damages.
Because lawsuits are so common in the real estate industry, it would be difficult for many professionals to stay in business without errors and omissions insurance. Find out how your insurance company can customize a policy for you.