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What is Real Estate Professional Liability Insurance?
Real estate brokers can represent buyers, sellers, individuals and companies. But because they operate in a highly regulated industry, they can be exposed to a range of liability exposures:

• Misrepresentation

• Undetected pest damage, sewage, or septic problem

• Error in home inspection; undetected problems with sewer or septic system, foundation, ceilings, roof, leaky pool, etc.

• Legal error

• Failure to detect intentional misrepresentation by seller

• Error in zoning interpretation

• Error in comparative market research report

• Undetected pollution (in soil, in well water, etc.)

• Inaccurate appraisal

• Inadvertently offered bad advice

• Bank mortgage error

• Overlooked property easement

• Breach of confidentiality

Coverage Available:

• Broad coverage for professional services associated with the real estate industry, including coverage for firms involved in residential sales, commercial sales/leasing, property management, consulting, appraisal and mortgage brokering

• First Dollar Defense

• Fair housing coverage

• Environmental hazards coverage

• Real estate development services coverage

• Contingent bodily injury and property damage for renovation services

• Shared expense deductible

• Worldwide coverage

Claim Example

Why it’s smart to have Real Estate Professional Liability Insurance
With a plan to sell his chain of local restaurants, the owner inflated its profit-making ability by overpaying in taxes for several years. A couple purchased the business, but when the business went bankrupt, they hired a forensic accountant who discovered the former owner’s deception. The couple sued the business broker for negligence and misrepresentation, claiming damages of $347,000.