The Basics of Commercial Real Estate Errors and Omissions Insurance
Unfortunately, one of the most common industries that faces Errors and Omissions (E&O) Insurance, or Professional Liability, claims is the commercial real estate business. Your clients within this field are at risk of being accused of failing to meet a client’s expectations, failing to document decisions or actions, or failing to act in a customer’s best interest. The most important thing to remember about Commercial Real Estate Errors and Omissions is that it only takes one mistake, or even a perceived mistake, for your client to be facing a costly legal debate.
Errors and Omissions Insurance is truly the best way for your commercial real estate clients to financially prepare themselves, should they ever face a lawsuit. Real estate agents should be able to focus on their business without needing to worry about a legal claim coming and suddenly knocking them off track. E&O insurance for commercial real estate agents will provide a legal defense for your clients and pay for damages, settlements, or judgments that they may be ordered to pay, up to the limits of the policy.
Another important factor to remember is how different commercial real estate is from residential real estate. Commercial real estate is business-focused, while residential real estate revolves around the needs of a homeowner and their family. Commercial real estate agents face much higher stakes when it comes to closing their sale, filing paperwork, advising their customers, etc. In addition to representing tenants of a business, in commercial real estate your clients also represent building owners or lessors, as well as investors who want to buy and sell commercial insurance.
Commercial real estate agents are tasked with finding opportunities that offer the lowest risk to their customer, the best return on investment, and the best capitalization rate. All of this means that Commercial Real Estate Errors and Omissions insurance is vital for your clients to carry.
PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth of knowledge to help our agency partners secure the best quality of coverage for their clients. We provide Professional Liability, or Errors & Omissions, insurance products for a number of professionals, including both commercial real estate agents and residential real estate agents. Please contact us today for more information at (855) 403-5982.