In the business world, you have to be careful about who you work with and the potential legal risks of each relationship. Claims related to vicarious liability can devastate your company, and without the right protection, you may find that the actions of someone else ruin both your reputation and your financial footing.
Breaching Contract on Behalf of the Employer
In the area of real estate, the actions of a broker or agent can be held against the managing firm through this concept of vicarious liability. As the experts at Highland Risk Insurance explain, a brokerage firm can be held liable in a court of law when claims arise that one of their real estate agents or brokers did not meet or comply with their professional duties. The vicarious liability real estate firms are most concerned with are cases where it can be shown that the company profited from the real estate agent’s actions. These instances could fall under broader cases of errors and omissions.
Areas of Misconduct
The following areas show where an agent might be accused of misconduct.
- Failing to disclose property flaws or damages
- Misrepresenting the price of a property
- Providing inaccurate information about leases, boundaries, title problems, or property features
In order to protect both the company and the agent from the financial cost of resolving legal claims, it is advised that you secure an insurance policy addressing this risk.