Why Do 100% Commission Real Estate Agents Needs E&O Insurance?
An online 100% commission real estate broker or agent serves as the representative of the seller or a buyer in any real estate transaction. To serve as a successful hundred percent commission real estate agent, you are expected to possess a professional license. In most cases, these agents receive 100 percent of the total commissions earned on different real estate transactions.
One of the important types of coverage that 100% commission broker or real estate agents are expected to give is the possession of E&O or Error & Omission insurance coverage. It also goes by the name as Professional Liability Insurance. Some more reasons for hundred percent commission real estate agents or online real estate brokers to access E&O insurance are:
#Expensive Legal and Court Costs
Some virtual real estate brokers might think of avoiding the error & omission insurance coverage as they think that they are doing their job meticulously without any chances of damages or risks. However, as a matter of fact, irrespective of how careful you might be, anything can go wrong when you would least expect it.
One of the best ways to stay safe is by choosing the E&O insurance cover for avoiding prospective risks in 100% real estate brokerage. When a client might sue you without the possession of this insurance cover, you might end up with a major financial loss due to the higher amounts of legal and court charges. Whether the client or you will win, you are expected for the lawsuit expenses.
The E&O insurance cover helps in covering hundred percent commission real estate agents from potential risks that any other general liability insurance is not capable of offering. The insured will always remain protected against a wide range of legal issues. The package in a typical E&O insurance cover might include claims, defense costs, actual and alleged negligence, and damages due to past services.
There is quite a high risk of a client suing you along with the virtual real estate brokerage California you are associated with. The E&O insurance cover contributes by providing access to precise record-keeping transactions as well as interactions with the client you are dealing with. With access to this relevant information, you are able to defend your profession.
As a 100% commission real estate broker or agent, it is also crucial to maintain a proper journal featuring detailed information of the clients. For instance, you should maintain emails, record phone calls, and note down important conversations on different topics. Make sure that your clients are signing proper documents on different actions they undertake.
The amount you are expected to pay during the start of an insurance plan is known as the deductible. The fees might vary from one brokerage to another. Some 100% commission brokerages tend to offer zero deductibles on E&O insurance packages. The only thing you are expected to ensure is that you fill out all the necessary documents.
As a reliable California virtual online real estate broker, it is important to understand the importance of E&O insurance coverage. It will protect your commissions while dealing with the clients.