One of the most demanding markets today is the real estate sector. And this is because, in this particular industry, customer expectations are often tough and hard to meet. Typically, real estate agents would find it difficult to fully determine what their clients really want or require based solely on sporadic personal interactions.

Real estate agents are also not safe or immune from legal complaints or lawsuits filed by their clients. Many of these buyers or clients would generally agree or be happy with almost everything about the property and would happily close the deal. However, later, buyers would complain again about how the property they had bought turned out to be what they did not expect. Such problems can escalate further and eventually, the property’s investors would file a legal claim against the real estate agent.

To prepare for such unfortunate situations and to protect their practice or business, licensed real estate agents and real estate companies must carry professional indemnity insurance. This particular type of insurance provides financial protection to any real estate business or professional against a number of claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of their professional services. By having professional liability insurance, your real estate business can still remain open and continue operations even if a legal claim against your business has not yet been resolved.

Different real estate professional liability insurance providers offer various types of coverage. And if this is your first time investing in this type of insurance, you should be aware of the extent of coverage the insurance will provide for your practice. Below are some of the civil responsibilities that professional civil liability insurance for real estate agents should cover:

• Unintentional defamation, including libel and slander
• Breach of professional duty
• Loss, damage or destruction of any document, file or record
• Any bodily or physical injury and property damage claims purchased or caused by a third party
• Claims investigation costs
• Intentional infringement of another’s patent, trademark, or copyright
• Any expenses incurred as a result of attending any consultation

As a licensed real estate agent, having professional liability insurance will give you a certain level of peace of mind. Your business cash flow will not be seriously affected even if you are in the middle of a lawsuit. And with the help of this insurance, starting over after the legal battle can be easier whether compensation has been sought or not, since your company’s personal assets are fully protected.