If you are curious about malpractice insurance for real estate agents, you need to focus your search upon Errors and Omissions Insurance. An E&O policy will guard you in the case of potential lawsuits brought against you by individuals who claim that you are to blame for their financial losses.
A typical E&O policy will pay claims that come as a result of human error, oversight, misrepresentation, or negligence. If a claim is filed against you, you need to take action immediately by keeping accurate records of every form of communication you have with the prosecuting party. This will help you protect yourself against inaccurate claims. Be aware that there are certain exclusions that can be found in the majority of E&O policies. Most policies do not include coverage for claims that are resulting from criminal activity, polluted property, bodily harm, or damage to property.
The bottom line is that even if you consider yourself to be immune from such groundless accusations, you need to recognize that you are still at risk. Should a lawsuit be brought against you, regardless of its substance, legal expenses will accrue and that could be distressing to your finances. However, holding insurance for real estate agents would mean that the insurance company would defend the claim being brought against you in court, as well as pay out any fines resulting from the lawsuit.