It is certainly a good idea to insure your business, regardless of the industry you work in. This is especially true in the business of real estate. When you work in an industry where you affect the hopes and dreams of the clients you work with, you need to carry insurance just in cast emotions run high and somebody wants to take something out on you. It is necessary to carry error and omissions insurance for this very reason.
Nobody likes being sued, but if it happens to you and you have errors and omissions insurance, you are only responsible for the deducible portion of the total amount owed to the plaintiff. If they win the case, that is.
While the hope is you are never in that situation, it is important to recognize that when you are talking about real estate and all of the aspects that are involved in the process of selling and buying a home, there is a chance that a mistake will occur. Protecting yourself from that possibility can save your business.
As with any type of insurance, errors and omissions insurance can be purchased through your regular insurance agent. If your agency doesn't provide E&O insurance, they can point you to somebody who will. You should check online as well to find E&O insurance provider that are well known and priced well.
Do not get confused between affordable and cheap, you need to ensure that you carry everything that you need for your business at the lowest price possible (affordable) while cheap insurance usually provides you with the bare minimum, which may not be all of the coverage that you need.
You most likely take great pride in your business, so you should protect it and your customers. Purchasing error and omission insurance enables you to protect not only yourself, but it also leaves your clients in a better situation if you make a grave mistake you cannot pay for yourself.
It also shows your clients that you care about them when you carry this insurance because it shows that you care that they get everything that they are due if you make a costly mistake. Furthermore, if you have employed anyone in your business, carrying E&O insurance will protect their jobs if you are sued. Instead of putting you out of business a lawsuit will be treated as simply a matter of course which will allow you to continue to provide quality services.
Nobody likes being sued, but if it happens to you and you have errors and omissions insurance, you are only responsible for the deducible portion of the total amount owed to the plaintiff. If they win the case, that is.
While the hope is you are never in that situation, it is important to recognize that when you are talking about real estate and all of the aspects that are involved in the process of selling and buying a home, there is a chance that a mistake will occur. Protecting yourself from that possibility can save your business.
As with any type of insurance, errors and omissions insurance can be purchased through your regular insurance agent. If your agency doesn't provide E&O insurance, they can point you to somebody who will. You should check online as well to find E&O insurance provider that are well known and priced well.
Do not get confused between affordable and cheap, you need to ensure that you carry everything that you need for your business at the lowest price possible (affordable) while cheap insurance usually provides you with the bare minimum, which may not be all of the coverage that you need.
You most likely take great pride in your business, so you should protect it and your customers. Purchasing error and omission insurance enables you to protect not only yourself, but it also leaves your clients in a better situation if you make a grave mistake you cannot pay for yourself.
It also shows your clients that you care about them when you carry this insurance because it shows that you care that they get everything that they are due if you make a costly mistake. Furthermore, if you have employed anyone in your business, carrying E&O insurance will protect their jobs if you are sued. Instead of putting you out of business a lawsuit will be treated as simply a matter of course which will allow you to continue to provide quality services.
About the Author:
In the business of appraising homes, mistakes are often very costly, especially if the appraiser does not have Error and Omissions Insurance. Every appraiser must have this insurance as part of their business, or they are at the mercy of lawsuits by home buyers and sellers. Guard yourself against this happening to your appraisal business by insuring yourself.
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