Every real estate firm’s worst nightmare is to find themselves on the receiving end of some law suit. This law suit, of course, would be filed by one of their buyers who for some reason or another suddenly became dissatisfied with their purchased property. Or worse, the buyer got into an accident because of what he or claims to be some “gross negligence” from your part.
Such situations are something that no real estate agent would want to get involved in but unfortunately, they do occasionally pop up. As such, it is important that real estate firms and freelance practicing realtors are covered by professional indemnity insurance.
But what is professional indemnity insurance? This specific kind of insurance acts as financial protection for licensed realtors from any civil liabilities that any of their buyers may decide to file against them. This insurance will cover a large chunk of the expenses that comes with the legal proceedings which include costs of defence, investigation and court costs. This insurance will also cover the costs of damages or compensation the complainants are demanding they should be paid with. With the help of this insurance, the firm’s operational budget will remain untouched and unhindered even if the lawsuit is draining away a lot of the company’s money.
In many countries, the professional indemnity insurance is considered compulsory. As such, it is important to have this kind of insurance if you own a real estate firm or you are a practicing licensed realtor.
Since the premium you need to pay for this particular type of insurance can be quite costly, you need to make sure that you will be choosing a trustworthy and reliable insurance provider. Below are some tips you can keep in mind in choosing your provider:
• Make sure the insurance company is duly licensed and regulated. The insurance firm should be regulated and have all the necessary licenses and accreditation by governing financial bodies or authorities.
• Find out the level or amount of experience the insurer has in terms of the real estate industry. There are many insurance companies that may have just recently started offering this specific type of professional indemnity insurance and this was not included in their offered services before. Although there is nothing wrong in dealing with new industry players, it would still be more advantageous on your part if you choose one that has years of relevant experience so that you will can be assured that you are in capable hands.
• Make sure that the insurer offers a wide range of services, including support services. You need to make sure that the insurance you will get has wide range of coverage and that you can have access to the company whenever you need help and especially when there is an emergency.
To learn more about real estate agent professional indemnity insurance and benefits of being covered by one, click on [http://reapi.com.au/index.php/faq-s].