With summer heat giving way to gorgeous fall temps, it’s time to gear up for autumn showings. And as clients pack your open houses hoping to view their new home in a quintessential fall landscape, you could find yourself with an increase in signings. Which is good news for everyone.
But with those new contracts come certain liability concerns. You could face an Errors and Omissions lawsuit, or take on a General Liability claim with all the foot traffic going through your office and the properties you show.
But don’t fret – there’s plenty you can do to avoid problems. Read on to find out more.
Did You Say ‘Liability?’ Is That Really a Concern for My Real Estate Business?
Absolutely. We live in a litigious culture. Let’s say you sell a home to a newlywed couple with big plans and bright ideas about how to go about making it into their dream home. But in the process of doing renovations, they discover certain information regarding the history of the house that you neglected to disclose. If that information affects the house’s value, they could sue you.
It may seem like a stretch, but when it comes to liability risks you can never be too careful. An Errors and Omissions lawsuit, if successful, can be financially disastrous. The good news? Even meritless claims are protected by Errors and Omissions Insurance, meaning that even if the couple sues you without good reason, you can tap into your insurance benefits to cover your legal costs.
For more information on how Errors and Omissions Insurance works, check out the post “What is Claims-Made Insurance Coverage?”
You Mentioned General Liability Claims. What Are Those All About?
Like Errors and Omissions claims, General Liability suits can be devastating to your pocketbook. Unlike Errors and Omissions, however, these claims can happen in a moment’s notice. It could be that as we get closer to winter, the steps to your real estate business are a bit icy and you neglect to salt them. If a client slips and breaks a leg – or worse – they could take you to court for damages. And should they win a hefty settlement, you could find yourself in a financial rut if you don’t have a General Liability policy backing you up.
Even the most prepared real estate business can face claims like these. Perhaps even more
Where Can I Learn More about the Insurance Policies I Need for My Real Estate Business?
Check out “7 Important Types of Business Insurance for Real Estate Agents” to discover which insurance policies can help ensure your prolonged success.