Some real estate professionals may take on ventures and responsibilities they may have dabbled with in the past, but may not be very familiar with, in an attempt to expand their business opportunities. For example, agents have been known to invest in operations that include duties as property managers, appraisers, and title or closing agents.
But doing so could possibly add to their list of liability exposures and as such, they could certainly benefit by having real estate professional liability coverage from NorthStar Insurance Agents. While many real estate agents may have prior experience with many of the services they’ve resumed, they could still face unseen or possibly new exposures.
Any agent that adds to their current list of services may not be up-to-date with current procedures and regulations, and any new issues could be problematic. In addition, many of these same agents may forgo some needed training courses.
Insurance agents will often consider the repercussions of any professional or personal risks their real estate clients could face, offering products and services that will aid them if targeted for litigation related to any issues resulting from their services.
Possible repercussions in expanding your current enterprise
Closing in real estate is the most important aspect of any transaction and when lending standards are raised, closing can become perhaps the most challenging aspect of any real estate transaction. Agents may find themselves on the receiving end of a lawsuit any time their client considers them responsible for issues, like a sale falling through.
Additionally, this could result in significant damage to their reputation, along with the expense of paying for a legal defense to fight a lawsuit, which could lead to serious financial stress for agents that aren’t properly insured.
Maintaining professional liability insurance is important in order to help minimize any potential exposures. In addition to ensuring that you have proper coverage for these exposures, you should also be aware of any new enhancements or advanced offerings that could help protect you against today’s emerging exposures.
A policy can be obtained from NorthStar Insurance Agents that will protect your company from allegations of professional liability, coverage that can be quite valuable, and that any real estate professional vulnerable to such risk should have to mitigate concerns.