A home is the most significant investment some people ever make. A real estate agent’s job is to assist people in buying and selling these investments.
A simple mistake or misrepresentation by a realtor could cost a home buyer or seller thousands of dollars. It can also result in a liability claim against the realtor. Here is why those in the real estate industry need to protect against such lawsuits with E&O insurance for real estate.
Mistakes (and Lawsuits) Happen
A home sale requires a lot of paperwork and involves many different people, which means a higher potential for mistakes. While an agent might not be responsible for any errors made, a client may hold the agent responsible for not catching such mistakes. Agents need protection from legitimate and false claims alike.
E&O Insurance Is a Necessary Part of Real Estate Transactions
While the E&O insurance real estate professionals carry is required to protect consumers, it also provides protection for real estate professionals. Without it, most agents could be one lawsuit away from insolvency – a lawsuit that might not have merit but could be costly to defend nonetheless.
E&O insurance for real estate may differ by the issuer. Real estate professionals should fully understand what is and isn’t covered by their E&O policy.
