How Can Realtors Reduce Their E&O Risks?
Real estate agents face a variety of risks in their daily operations including environmental liability, claims against RESPA, violating the ADA, and many more. While this may seem daunting, the right Errors and Omissions Insurance can provide the necessary financial compensation and legal support needed to defend your clients in their cases. Further, share the following advice with them to prevent the most common types of claims from occurring in the first place.
Protecting themselves financially with the right Errors and Omissions (E&O) Insurance policy is the fool-proof way to ensure Realtors won’t face hefty financial consequences in a lawsuit, but there are also steps they can take that may reduce their errors and omissions risks as well. Here are some straight-forward risk management strategies as noted by E&O experts to implement.
Create written service policies. Getting it in writing will prevent lawsuits stemming from any discrepancies the realtor and the client might have. Plus, it ensures that the realtor is thorough while building a positive rapport with the client.
Take classes. This shows commitment to the real estate industry, and can make your realtor client appear more reputable and trusted if their client knows they have the best educational background possible.
Keep a paper trail. As with any industry, record and transaction logs need to be kept to maintain accuracy with the client. This will save time and headaches of trying to figure out requests, updates, and progress on the house hunt.
Seek advice. Seek counsel from a professional lawyer who specializes in real estate matters- be proactive and prevent claims from occurring from the start!
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