Liability Risks for Realtors

Liability risk is a big concern for real estate companies. Unhappy clients sue for a number of reasons, including malpractice and negligence. It is critical to discuss your liability options with an insurance agent to ensure you are protected.

Liability Coverage

Real estate professional liability insurance is a must to cover claims filed by clients. Without adequate coverage you could find yourself paying exorbitant legal fees and court settlements. Coverage can protect you against the following scenarios:

  • Malpractice – The greatest exposure that realtors face is malpractice lawsuits brought by unhappy sellers and buyers. If a client discovers defects in their house that weren’t disclosed before the sale, they could file a claim of fraud or misrepresentation. Even if the error was not your fault, you may be liable for paying devastating expenses.
  • Negligence – These claims arise when a client is injured, or their property is damaged at your office. If an employee is injured while working for you at another location, they may file a claim as well. In addition, if a client claims you have infringed on a copyright or trademark, they may sue you and your company.

Even though you have your clients’ best interests at heart, mistakes and accidents can happen. Make sure you have a comprehensive liability insurance plan to protect your investment.