The act of doing business in today’s often-litigious environment is no small task. Many services offered come with a variety of exposures and, even someone who carries insurance may find that their policy doesn’t cover them for certain allegations regarding the type of service they perform. Businesses need to assess risk based on the type of work they do, the clients they take on, and how well their written contracts shield their company from the type of lawsuits they may one day be facing.
Mortgage brokers, property managers, and real estate agents are all susceptible to claims of errors or omissions related to the services they provide. Clients, often having buyer’s remorse, may seek retribution through the courts for what they claim was a misrepresentation of the facts. In some instances these claims may have merit, while other times they may be baseless. In any event, Austin Professional Liability Insurance is the right policy to combat claims that a broker or agent was neglectful in the services they performed.
Practicing risk management in addition to coverage
Lawsuits can often be avoided. The best place to start is to use good risk management techniques to reduce the risk of litigation in the first place. These measures should include the consistent use of industry standard contracts and disclosure forms, and regular training for licensees on best practices for minimizing risk.
Speaking to experienced counsel specializing solely in your specialty area of real estate is key. Insurance is one of those areas where companies may try to cut costs, but no one should go with a policy that doesn’t properly reflect their needs, leaving them either under-insured, or insured, but not in areas where they face the biggest exposures.
Insuring professional firms often poses challenges for insurance agents. To protect the business properly, an agent needs to evaluate all the exposures that business faces. In that way they can offer solid coverage solutions utilizing an Austin Professional Liability Insurance policy that can close gaps between existing policies and avoid coverage issues should a claim ever arise.