The Dangers of Going Without Professional Liability

Posted on: March 23, 2016 by Huntersure

Commercial real estate professionals, like many other specialists, face various inherent risks on a day-to-day basis. As they offer services for a fee, this means that they are required to carry Professional Liability for Commercial Real Estate experts. It protects against negligence, libel, slander, false advertising, and other discrepancies that are common for this industry, making this coverage critical. Let us take a closer look at the risks of foregoing this policy.

First and foremost, Cavignac & Associates defines professional liability insurance, or errors and omissions insurance, as malpractice insurance and it is purchased by architects and engineers as well as doctors, lawyers, accountants, real estate brokers and other licensed professionals to address business liability risks that arise from rendering professional services.

However, many companies think this policy is optional. While it’s a requirement in many states, the sheer numbers are proof that this policy is a necessity for any professional insurance portfolio. The average damage payout for a professional liability claim is $475,000. Even if a large corporation can front this money out of pocket, they may be obligated to cut costs to cover the fees, leading to employee layoffs and price increases.

What does this policy cost? Typically, only 1 to 3 percent of the company’s annual revenue, depending on the number of employees the firm has. Bear in mind that any company that is found at fault for a professional liability claim and does not carry the right insurance can face significant fees and penalties on top of the damages. Therefore, it’s important for your clients to weigh the options of choosing to forego this coverage if it is not required by law in their state.

At Huntersure, we offer professional liability insurance for a number of industries including commercial real estate professionals, accountants, lawyers, and more. We specialize in writing products specifically designed to cater to these sectors and pride ourselves on our exclusive nationwide carrier relationships to offer competitive pricing. For more information, contact us today at (855) 585-6255.

Posted in: blog Professional Liability

Tagged: Commercial Real Estate E&O E&O Insurance Professional Liability for Commercial Real Estate