If you are a real estate agent in the Ontario area, obtaining and holding an error and omission policy should be considered a necessity. One simple lawsuit can jeopardize your business and throw you into financial ruin. Even if you follow all the rules and stick to the codes there is still always a chance that you can get sued.
Even if you are found not at fault, you are still going to have to pay court costs and lawyer fees. This is where errors and omissions insurance can protect you, your family, and your business. Not only this, but holding error and omission insurance is an excellent selling point. When customers know that they are protected by the insurance, they are going to feel more obliged to acquire your services.
With all that being said, E&O insurance premiums are not cheap. In fact, the premiums for E&O coverage are steadily rising and probably will continue to rise in the future. This is in partly due to the numerous amounts of lawsuit and claims being filed against participating companies. However, you will be happy to learn that there are precaution and methods that you can take to reduce your risk or being sued and your premium costs in the process.
Taking Risk Reduction Classes
To start off, there are a wide variety of risk reduction classes available for real estate agents in the Ontario area. Not all, but some E&O insurance providers will offer reduced premium rates to their customer that have taken these classes. Taking these classes prove to the insurance companies that you are committed to the industry. If you have employees working under you, it will also be imperative that they take these classes, as well.
Consulting With A Lawyer
A lawyer with extensive knowledge in litigating real estate matters can evaluate your company and tell you where your greatest risk lie. He or she can also advise you on the proper steps to take in order to reduce your risks of being sued. These lawyers can also come into your business and give intuitive seminars to your employees, as well. This will help to keep everyone informed on real estate matters.
Maintain Good Customer Relations
Always keeping in touch with your customers and opening a line of communication can greatly help, when it comes to preventing lawsuits. For instance, if you have a good line of communication with a customer and a problem arises, they are more than likely to contact you before filing a lawsuit. This gives you and your clients the opportunity to work through the problem, before it is tied up in the court system.
Shopping Around For An Agent
While there are tons of different licensed agents in Ontario that offer E&O insurance polices, you need to know that not every policy is designed the same. While it is important that you get the very best coverage possible, it is also important that you get the best rates possible. Shopping around and looking for different insurers can give you a great chance to compare polices and prices. Just remember that the cheapest option may not always be the best choice.