Coverage for professional liability claims for real estate agents, property managers, mortgage brokers, and other professionals in this industry is needed for the unique exposures that these individuals face. This coverage is for claims of errors and omissions or negligence in the course of instructing, advising, or suggesting a course of action to your clients and any resulting fallout.
For example, you could face a claim arising from your failure to properly qualify a lender who subsequently becomes delinquent on payments. In such a case, that individual (plaintiff) may have been given a second mortgage on his or her home to pay off their credit card debt. Let’s say your client ends up deeper in debt and is unable to pay their credit card debt, or the first or second mortgage. They may turn around and sue you because they claim you should have known their history and the fact that they would have been unable to pay.
Lawsuits of this type are not uncommon
Whether you’re assisting with loan processing or refinancing a business, when the services you provide results in financial injury to your client, any lawsuit resulting from this type of accusation could have serious repercussions. You could likely end up in court and possibly end up in complete financial ruin.
By having this insurance in place it will assist you with court fees, any ensuing defense costs, as well as paying the resulting damages or settlements that the court may determine necessary, up to the coverage limits of the policy. However, the cost of defending a claim of this type can be substantial, and may even surpass the available coverage limits (which can ultimately reduce the amount of funds left to cover damages). As the insured, you can have your policy written to pay defense costs outside of any liability limits written into the policy.
Most people agree that the protection provided by an Austin Professional Liability Insurance policy is necessary in order for real estate professionals to survive in the litigious world in which we live. Not only do you need to be concerned about being embroiled in a lawsuit, but you also need to consider the amount of damage this can bring to your reputation as well. Managing this type of risk is vital to your continued success.
Attorney Professional Liability Insurance in Austin, TX is vital for those times when, for any number of reasons, a relationship between you and a client turns sour. When this is in fact the case, while you may hope for a peaceful resolution, it may end with an unsatisfied client and litigation is likely to be pursued. A couple of common issues that often develop are a situation where you may decide to withdraw for certain reasons, or the relationship between you and your client breaks down to the point where you both decide to part ways. In either case, this is the time when your professional liability policy will come into play.
Have you provided your client with good service?
Perhaps no professional shortcoming is more widely resented than procrastination. A client’s interests can often be adversely affected by the passage of time or any change of conditions. For example, if you were to overlook a statute of limitations your client’s legal position may be jeopardized and this could result in them bringing a claim against you. Even when your client’s interests are not affected in substance, any unreasonable delay may cause your client needless anxiety and undermine their confidence in you.
Unless either party terminates the relationship you should carry through to conclusion all matters undertaken for a client. Once the matter has been resolved the relationship naturally terminates. The client may assume that you will continue to serve on a continuing basis unless you give notice of withdrawal. Any doubt about whether a client-lawyer relationship exists should be clarified by you in writing so that your client will not mistakenly suppose that you are looking after his or her affairs when in fact you have ceased to do so.
Whenever a representation is terminated, whether by the lawyer or the client, the lawyer still has certain responsibilities to consider. A lawyer must take steps, to the extent reasonably practicable, to protect the client’s interest, including giving reasonable notice, allowing time for the client to engage other counsel, surrendering papers and property to which the client is entitled, and refunding any unearned retainer.
These are the times when every attorney can benefit from having Professional Liability Insurance in Austin, TX. Speak to an agent with any questions or concerns pertaining to this coverage.