One necessary part of owning and operating a business of any kind is insurance. You have to insure nearly every aspect of your business in order to ensure your success. Working in real estate means that you will have to purchase real estate professional liability insurance. There are a few different things that this type of policy covers.
Factual errors can be very bad in the real estate business. Making untrue statements about the home being sold or the area in which it is located is a huge mistake that can cost you dearly. Any errors made on documents or paperwork can be similarly consequential. Since even the best real estate agent can make a mistake here and there, intentional or otherwise, liability insurance is a necessity.
Failure to report certain facts is also a problem. If you have an inspection done which reveals a problem, you are required to tell your client of said problem. If you don’t let them know, your client can sue you for damages. In that event, your insurance will cover the settlement, as well as legal fees.
Making sure that your agency is covered in the event of any errors or omissions is very important. Having real estate professional liability insurance can mean staying in business even during a lawsuit. Make sure that you aren’t brought down by any allegations against your business by purchasing this type of insurance as soon as possible.