Real estate agents play an important role throughout the process of buying and selling houses. Being so closely involved in these types of transactions also increases the risk of a potential lawsuit. These situations can arise from any kind of disagreement between the buyers and sellers. Since you often can’t predict these disputes, it is important for your real estate company to be prepared. Here are some benefits of having real estate errors and omissions insurance.
The most important benefit of having errors and omissions insurance is that the insurance policy acts as a safeguard. If your real estate business were to face a lawsuit without an insurance plan, your company could end up having to pay a lot of money.
Another benefit of choosing an errors and omissions insurance plan is that you will have the opportunity to work with an insurance agent to customize the best coverage options for your company. These insurance agents specialize in real estate risk management, which means they will help you determine the best proactive approach for your business.
In the end, real estate errors and omissions insurance exist to offer realty companies and broker agents adequate protection against future unknown risks. Just remember that it is better to have an insurance policy and not have to use it, then to wish you had one.