Most real estates are led by a single person. Only a few percentages of them are small businesses. However, solely led or small-scale, both need insurance other than the general liability insurance. Sine this is a business that involves a lot of paperwork, mistakes can occur.
What Kind of Mistakes Can Occur?
The nature of honest mistakes can be complicated or simple. However, without an errors and omissions insurance, the realtor can end up in serious trouble. A mistake in the paperwork can cause money loss to the client. This is why the realtor can end in lawsuits. Sometimes, the mistakes caused are due to anything but carelessness, Even in these cases, the realtors has to pay a lot of money to defend themselves to keep their business out of trouble. While some realtors are able to defend and save themselves from all kinds of lawsuits, most of them cannot afford to. Real estate businesses are small businesses which do not have the money for any other expenses than they’re already paying for. In case, the realtors do not have enough money to defend themselves, they will probably have to shut down permanently.
Errors And Omissions Insurance
This insurance will be able to prevent your business from shutting down. In most cases, it is not even the professionals’ own fault. However, if they’re unable to protect themselves, they can end up in serious trouble. To keep themselves protected from a complete shutdown, they should get an errors and omissions insurance. How the insurance protects from unfair lawsuits is described on the website. Most realtors only get a general liabilities insurance however, they later find out that this one doesn’t protect them from lawsuits filed by clients over mistakes.