Being a real estate agent comes with the ups and downs of the market along with other risks. One often overlooked risk is that of being sued. Real estate e & o insurance can protect you from the financial losses associated with a claim. Whether true or not, a claim can cause financial hardship if you are not covered.
When you rely on the firm to cover you with their e&o policy, you are subject to the coverage options and limits they set. Certain services or activities such as open-house liability or discrimination may not be covered by the firm’s policy. If their policy doesn’t cover it, you are left fiscally responsible.
Even if you belong to a large firm with a million-dollar policy, each agent may not have access to the full coverage limit. If someone else in the firm is sued, their claim takes money away from a future one against you.
Often the insurance at a firm terminates when you leave. However, older claims may not be picked up by the new firm. Your own e&o policy moves with you.
Don’t rely strictly on the firm to cover you in the event of a suit. Invest in real estate e&o insurance for a little peace of mind.