Real Estate Agents are among those who market themselves for being experts, or at a minimum skillful, in their field. On this sense, they may be deemed professionals. Being persons who market themselves as experts or possessing special skills, people may rely on their advice as such. Thus, legislation makes it necessary that caution should always be exercised in offering advice such that a real estate agent must always stay throughout the expertise or skill expected for real estate agents. Notwithstanding the exercise of caution, however, real estate brokers can still commit mistakes as humans are prone to. This is when suits may arise and an agent may be needed to cover damages, loss, or injury which the court may order. Hence, it is preferable for agents to secure real estate professional indemnity insurance.
Professional Indemnity Policy
A dealer may secure an experienced Indemnity Policy. This policy is made to protect the professional’s assets if a claim arises. Such protection is to make certain the professional can continue functioning with the business despite such claim. This sort of policy will probably be helpful in being sure that one’s hard-earned assets and options for income tend not to suffer in the event of lawsuits.
Claims Made and Notified Policy vs. Occurrence Policy
Insurance could possibly be based upon two kinds: Claims-Made or Occurrence. In a Claims-Made policy, it is necessary that the insured must notify the insurer of any and all claims, fact, circumstances or situation which could potentially lead to a claim. Such notification need to be given inside the amount of the insurance policy except should there be a retrospective cover. Whereby, the chance insured against may occur whenever you want. Additionally it is necessary that the insured is not aware of the actual fact, situation, or circumstance before the duration of insurance. Alternatively, an Occurrence policy, the simple fact, situation, or circumstance must arise only during the time of insurance while the insurer might be notified anytime subsequent to the happening of such fact, situation or circumstance.