An allegation of professional neglect can come even from the client you trust the most, and an oversight that you would otherwise consider minor. While it is great to have confidence in your competency, it might not be a good idea for you to go without real estate liability insurance. There is a myriad of ways an agent or broker might find themselves on the receiving end of charges. Without the protection of liability coverage, there may be nothing standing between you and financial ruin.
Legal fees are known to be outrageously expensive. Even if you are found to be not at fault, such a judgement may not remove the expense from you. That can leave you with a big bill to pay that you had not planned for, and that is not in your budget. If you do not have the money available to cover the cost, what will happen to you and your real estate business? In many cases, the financial burden has been enough to put brokers out of business, even though the judge found the claims unfounded.
You might not want to be found unprotected when litigation arises against you. In order to protect your finances, you might want to be sure to have real estate liability insurance.