When someone alleges fault, negligent or incomplete services, real estate agent insurance coverage can help cover legal expenses and related court fees. If your business is found guilty of negligence, the policy also pays for the settlement or requisite judgment costs.
Fundamental Coverage Recommendations
Real estate agent insurance is a necessary policy for those who deal with clients. Often lawsuits are more a reflection of a disappointment in the outcome of a venture than they are a reflection of your work. However, two common fundamental coverage recommendations include:
- Claims-made Coverage – This coverage is based on two underlying stipulations. First, your policy must be active when the alleged incident occurred. Second, your policy must be active when you file a claim.
- Tail Gap Coverage – This type of coverage allow you to file claims during the transition between the end of your old policy and the activation of the new one.
- Prior Acts Coverage – This allows your business the versatility to file a claim for unreported events that happened prior to your new policy becoming effective.
If you are at fault, real estate agent insurance ensures your firm can survive the costly legal process. However, it is vital to ensure that your policy is in effect well before it ever becomes necessary to file a claim and that it was in force during the incident.