Litigation is both costly and time consuming, and realtors are increasingly the targets of lawsuits. Lawsuits against realtors involve claims for failure to diagnose some material defect, claims that the realtor misrepresented the property in some way, or that a property inspection was handled inappropriately.
Real Estate Agents’ Professional Liability Insurance is a specific variation of Professional Liability Insurance (often called “Errors & Omissions Insurance” or “Malpractice Insurance“) designed specifically for professionals in the real estate industry.
This product protects the assets of real estate agencies, brokers, and individuals from claims of wrongful acts (errors, omissions, or negligence) that result from the performance of their professional duties.
Policies cover financial losses and expenses (including legal fees) that result from a claim. Some policies also protect against slander, libel, and breach of contract. As with other types of professional liability insurance, the insured is generally protected against all lawsuits, even frivolous ones.