Whenever you are a real estate broker or other professional, it is important that you are properly insured. Whenever you are trying to find the right type of professional liability insurance for real estate brokers, it is important that you pay close attention to the terms of the policy you are considering. There are many different companies that would be more than willing to help with your need for purchasing professional liability insurance.
Do I Need Insurance?
If you have general liability insurance or some other insurance, you may wonder if you need this coverage or professional liability coverage. While having general liability insurance is helpful, having professional liability insurance, also known as errors and omissions insurance, is important. General liability will only cover the losses you caused someone to have in the area of profits lost during not being able to provide services. Always make sure that you check the terms to see what your specific policy covers.
Professional liability will cover you in case you are sued because you failed to give them proper information, or failed to perform your services up to the standard which is expected of a professional. As a professional, you are expected to know the latest information in the industry. If you advise your client with old advice, you could cost them a significant amount of money. Making sure that you stay up to date on the information in your industry is very important. If you do not do this, you could end up with a lawsuit on your hands.
If you are sued, your insurance should cover legal fees. Your lawyer, court costs, and settlements are usually considered to be legal fees that will be covered in case you need to make a claim on your insurance policy. Once again, always make sure to read your policy to know what you are getting. There are certain policies that will exclude a certain problem or claim type, so you must make certain that you have read through the entire policy and you know what is being offered.
Those of you that are not legal minded may want to speak with your attorney. Show the documents to your attorney before you decide to sign anything. When you do this, you can be sure that you are not going to be getting a policy that is of very little help to you.
Picking the Right Coverage
Once you have decided that you are going to invest in real estate brokers coverage for your company, you need to figure out what the right coverage for you is. If you are a large company that works on big projects, you may want to get a large amount of coverage. If you are the only one that the coverage needs to cover, you may not need as much coverage.
Speak with a professional that knows about this type of insurance. Make sure to write down a list of questions so you will be able to reference those questions during your talk with the person that is going to help you with your insurance questions. Many times, if we do not have a list of questions written down, we will forget something that is important.
Professional liability insurance for real estate brokers is something you should make sure you invest in. You do not want to be left out in the cold whenever you are sued. Having an insurance company on your side to help you through this time can be greatly helpful. This is why it is such a good idea to take time when picking the company to be insured by.