You know that you’re a good real estate agent, but no matter how careful you are to do everything right, mistakes do occasionally happen. Even if you don’t make a mistake, an unhappy client could still sue you, costing you quite a bit of money in the legal fees you need to defend yourself in the lawsuit. This is where E&O for real estate agents comes in. It covers your legal fees and potential settlements the other party is given.
If clients can show that a decision you made during the buying or selling process caused them harm, you may be sued for malpractice. Your E&O policy can cover accusations concerning a variety of legal issues:
Something wrong with the house that was missed on the inspection
Different payment amount than discussed
New damage to the property
Sometimes the lawsuits that clients bring are without merit. Huntersure recommends that you still have a way to pay the fees necessary for your defense.
What’s Not Covered
Most E&O policies have some exclusions. Most exclusions go to intent. If you intentionally misrepresent the property, for example, you are probably going to have to answer for that choice without the backing of your insurance company.
No matter how mindful you are of the buying or selling process, sometimes clients are dissatisfied. A solid E&O policy can come in handy when this happens.