Professional Liability Insurance for Real Estate Brokers

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Being a professional real estate broker can be a rewarding job. Helping people find their home and make them happy is a feeling like no other. According to the National Association of Realtors home sales has increased 1.4% in October 2018 after decreasing for the previous six months. This means the demand for real estate brokers is rising. However, this industry also presents its own set of risks. These risks can be managed by purchasing Professional Liability for real estate brokers.

Professional Liability for real estate brokers is an insurance policy that provides coverage for errors & omissions, or negligence, made by the covered broker. It can also provide coverage for agents and property managers.

What are the common Professional Liability risks real estate agents face?

There are many risks to be aware of as a real estate agent or broker. One example is if you tell the buyer’s agent facts about the home and they don’t relay these to the client, the client could then come back to you and say you never told them. You could also be exposed when it comes to network security since so much of the paperwork is done electronically. All of these things pose great risks to you and your business, but they can be mitigated with the Professional Liability for real estate brokers insurance policy.

What does Professional Liability Insurance for Real Estate Brokers cover and what are the key policy benefits?

In addition to the scenarios above, there are several things that the policy can cover and many benefits that it provides. Every insurance company has different coverages available so be sure to discuss all of your options. Some of these include:

  • Subpoenas – There may be a time where you are subpoenaed and are not a defendant. Generally, an insurance policy will cover the defense costs for a named defendant only, while this coverage provides that extra layer for subpoenas.
  • Failure to act in a timely manner – Not acting quick enough can cause lost opportunities. A buyer that falls in love with a home or a seller that has someone interested could say you did not act quickly enough in order to get the transaction completed.
  • Failure to secure electronic data – The network security mentioned above is a hotspot right now for claims. It is imperative that your clients’ information stays secure, but unfortunately, things happen. This coverage will provide a limit in case you get sued for potential or actual damages. It is important as well to have Cyber Liability insurance to protect your business from the threats that are prevalent in today’s tech-driven society.
  • Previous Work - Sometimes a claim will arise that you don’t learn of until some time later. When the policy is purchased, the company will determine a date with your help in which claims will be covered back to.

There are several other optional coverages available. Speak with one of CoverWallet’s trusted team members to get a quote and discuss all of your options.

  • Additional Coverages - Most policies will have some enhancements that you can add to your policy, and the need for these will depend on your niche. If you are a consultant in the technology arena, you will want to make sure you have Technology E&O. If you are consulting on business mergers or acquisitions, there is a special endorsement for this coverage. CoverWallet’s team of educated advisors can discuss your unique situation and provide you with some options.

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How much is Professional Liability Insurance for Real Estate Brokers?

Professional Liability insurance for real estate brokers, or Errors and Omissions insurance, can vary in price. In average the premium for Professional Liability insurance is $70/month. However, there are some factors that influence the premium including claims history, coverages and limits selected, and above all your annual commission received. In addition, states differ in their premiums, and it also varies depending on whether you are selling commercial and residential properties. At CoverWallet, we know that you already have the stress of not having a fixed income, so let us help reduce your stress by working to get you the best quote possible with the best coverages to suit your needs.

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The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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