Obtaining a real estate professional liability policy is one of the best ways to protect your real estate business, whether you operate a small office or a large firm, against risks that could threaten your company’s reputation and financial stability. However, it is important to understand what factors affect your company’s monthly policy premiums.
Like your personal auto insurance policy, how much your real estate professional liability premiums are reflect factors that are unique to your particular business. Your rate may depend on the individual characteristics of your firm, any risk management practices you have implemented, past claims experience, the number of real estate professionals that you need to cover under the policy, your coverage limits and deductible, and how extensive your coverage is.
Although your professional liability premiums heavily depend on factors that are unique to your firm, there are several things your business can do to mitigate risk. For example, you may want to consider offering home warranties when your clients purchase property, standardizing office procedures, and making sure that every professional who works at your office uses forms that align with accepted industry standards.
However, while reducing risk may initially sound uncomplicated, actually doing so can be a daunting task. Your professional liability advisors may be able to introduce you to strategies to mitigate risk and ultimately protect your real estate business’ best interests.