In order to save a few bucks, some real estate agents choose to cut insurance, especially when times are slow. However, getting rid of real estate liability insurance could be a big issue when a client files a claim. Without insurance, an agent could be at the mercy of a client, leaving them without any assets to run their business. Liability insurance is essential for real estate agents for several different reasons. The real estate world is full of risks. A change in the economy, a fluxuating housing market and the whims of a client can all cause big financial risks for a realtor. Real estate liability insurance helps to protect agents against these types of risks. By purchasing coverage, realtors are better able to provide the services they would like to offer their clients without worrying what could happen. New exposures happen all the time, leaving agents vulnerable unless insured. When it comes to real estate transactions, closing on a deal is by far the most important. Complications can arise when clients feel as though they were taken advantage of. With liability insurance, real estate agents can be protected in case a deal falls through and a lawsuit is filed. Without ample protection, the practice of real estate can be damaged. By investing in the right coverage, agents are better able to get the job done.