As is the case with other service-providing organizations, real estate agencies require liability insurance for financial protection. When companies work closely with clients, they face a number of exposures. Errors and omissions insurance for real estate agents keeps agencies and their employees safe from damaging liability claims by providing various types of compensation.
After claims are filed against them, real estate agencies must contend with longwinded, costly trials. Even if a claim is completely groundless, a real estate agency is still expected to pay attorney fees and other court costs. Errors and omissions insurance assists in the payment of these expenses. Furthermore, if an agency is found guilty of negligence or another offence, the insurance also covers damage payments. Liability coverage functions as a financial cushion that saves agencies from having to pay the full extent of their court costs. Lawsuits are expensive affairs and have the potential to ruin companies that go unprotected. With errors and omissions insurance for real estate agents, though, agencies can keep their financial assets secure.
Real estate agencies are no strangers to liability claims, with disgruntled clients filing lawsuits for everything from misinformation to oversight. As their chances of encountering claims are so high, agencies are advised to acquire errors and omissions insurance for real estate agents if they have not done so already. Insurance companies can assist them with crafting a policy that best suits their needs.