Real estate agents are often closely tied to their communities, and as such they tend to become respected for their knowledge of the insurance industry. During hard times, some have sought to take initiatives to grow and expand their practices in any way possible. While being flexible can obviously help many agents keep their practices solvent, it can also lead to new risks and exposures. Your insurance agent or broker, understanding the ways in which you are seeking growth, can help you to manage the exposures you may be potentially overlooking.
One way many real estate agents try to improve their financial outlook is by expanding operations geographically. They start accepting listings and representing clients in different neighborhoods or towns, but because real estate markets typically have significant local differences, agents can face major changes when venturing into new territory.
This opens up new Real Estate professional liability concerns. From property values, to neighborhood rules and regulations, you need to be informed about the areas where you’re expanding your practice. If not, you risk encountering lawsuits, unhappy clients and potentially losing your practice.
You need information about changing legislation, procedures, etc.
As an real estate agent who may be adding to your repertoire, and perhaps you’ve had experience offering additional services in the past, you’re still likely to be unfamiliar with current procedures, methods, issues or even new regulations. For example, you may not have the time to take some necessary training classes, which could lead to your taking professional and personal risks along with any of the repercussions you could face in the event you’re targeted for litigation related to the new services you’re offering.
Insurance agents play a key role in helping to protect your businesses. Risk solutions can come in many forms, from product solutions to risk management resources as well as professional advisors. Take the time to consider all the available risk management techniques and solutions currently in the market, and make some informed decisions about how best to protect your practice and your livelihood.
By maintaining the right Real Estate professional liability insurance products, real estate professionals are taking important steps to minimize potential exposures. In addition to ensuring that you purchase traditional E&O coverages, you should be made aware of newer enhancements or more sophisticated offerings that help protect against today’s emerging exposures.