Most of us have been there – a mistake is accidentally made on an ad, no one picks it up and it goes to print. Sometimes we’re lucky and we can hustle to fix the problem before the whole world knows about it. But BizCover asks the question: have you thought about the impact of a small error if it’s not caught in time?
Take the agent who sold a block of land claiming in their advertising that it was a sewered block ready to build on. The purchaser turned up with a transportable house only to find out that water was not connected to the block. Whilst the purchaser was able to resell the land and make a profit, they still claimed (and won) damages from the agent of $10,300. The agent also incurred $5,000 in defence costs.
You’ve also probably heard about the recent Melbourne case where a couple who bought a home in Hawthorn are suing the real estate and vendor for damages of $178,000, claiming that the property was falsely advertised. It’s alleged the property’s land size was advertised as 490 square metres when its actual size was 431 square metres.
These cases highlight the importance of not only ensuring you have a good proof reader – but also that you have a good Professional Indemnity policy in place to ensure you can afford to defend your reputation and protect your business. Whether it is a $10,000 claim or a $250,000 claim, we’d all prefer it didn’t come from our bottom line.
To compare insurance quotes, including Professional Indemnity, visit bizcover.com.au.
BizCover is Australia’s no. 1 business insurance service. They have simplified the process of purchasing insurance for Real Estate Agents. You can compare quotes instantly, select and buy a policy from some of Australia’s leading insurers in a matter of minutes, saving you time and money so you can focus on what’s really important – selling real estate. For more information visit bizcover.com.au.
