2014

Professional Liability Insurance for Real Estate Agents
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  • Expert, licensed insurance agents to guide you through the process.

Protect Your Residential Real Estate Business with Professional Liability Insurance

There are thousands of ways that real estate transactions can go awry, so there are thousands of ways for real estate agencies to get sued. Whether your advice fails to meet a client's expectations, you fail to document decisions or actions, or the client believes you didn't act in his or her best interests, it only takes one real or perceived mistake to spark a costly legal battle.

When client dissatisfaction turns into a liability lawsuit, errors and omissions insurance steps in to protect your business. Also known as professional liability insurance or E&O coverage, this type of insurance can provide a legal defense and pay for damages or settlements you may be ordered to pay, up to the limits of your policy. It can also protect you against unexpected liability if your work or advice for a client causes damages to a third party.

For example, suppose your agent fails to disclose to a buyer that a home has sustained water damage. Months after the sale, the buyer is stuck with a costly bill for mold remediation and sues your company for damages. Professional liability insurance can provide a legal defense, help you fight your case in court, and pay any settlements or judgments awarded to the buyer.

What Professional Liability Insurance Covers

Business Insurance Now's residential real estate professional liability insurance policies can provide up to $10 million in coverage for:

  • Defense in legal proceedings
  • Damages payable to clients because of problems with the professional's work or advice
  • Third-party discrimination
  • Punitive damages up to $250,000 (where insurable by law)
  • Joint ventures as insureds
  • Final adjudication language for fraud claims
  • Spousal liability
  • Personal injury offenses
  • Competitive minimum premiums for various limit options
  • Bi-lateral extended reporting period
  • Follow-form excess coverage available
  • Duty to defend

Please note that real estate professional liability policies typically provide coverage on a claims-made basis. This means that for a claim to be covered, the incident in question must have occurred while the policy was in force, and the claim must also be reported to the carrier while the policy is still active.

Contact Business Insurance Now for a Free Risk Assessment

To ensure adequate coverage, many real estate professionals need help selecting the right professional liability policy and coverage level for their business. Contact the real estate insurance experts at Business Insurance Now for a free risk assessment to help you select the right professional liability policy for your real estate specialty.

Get a FREE professional liability insurance quote now!



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Professional Liability Insurance Tips

  • Professional liability insurance is generally issued on a "claims-made" basis. So, for a claim to be covered, the incident in question must have taken place while coverage was in force, and the claim must also be filed while the policy is still in force. If you let your policy lapse after a sale, and then you get sued, you won't be covered.
  • Use contracts to clearly specify the limits of your responsibilities to the client. Doing so can reduce the risk of a lawsuit and can help protect you against situations that aren't covered by professional liability insurance.
  • Strive to keep positive relationships with your clients. But even if you do, remember that even the best client relationships can go bad when big money is involved. The risk of a lawsuit is ever-present in the real estate industry, so don't do business without professional liability coverage.