Top businesses we insure in Real Estate Business Insurance
Understanding Real Estate Business Insurance
Real estate agents and brokers, being licensed professional, are susceptible to lawsuits as a result of acts or omissions occurring during the listing, renting, selling or buying processes for their customers. Missed disclaimers in contracts, negligent interpretations, comingling of funds, and unfair practices are all examples of the types of claims covered under a Real Estate Agent Professional Liability Policy. A simple error or omission could result in a massive loss for your business.
Watch the video to learn more about real estate business insurance
It is important to study the dynamics between real estate agents and real estate brokers to differentiate their real estate business insurance needs. A real estate agent is essentially a salesperson who works under a broker. They cannot work independently. Real estate brokers are more knowledgeable and are liable for the actions of their agents.
The following are the types of policies a real estate office should consider:
- Errors and Omissions aka Professional Liability
- General Liability
- Workers’ Compensation (non professional staff, clerical and administration)
- Cyber Insurance
- Commercial Auto
- Business Property
What are Business and Professional Risks in Real Estate Business?
- Employee injuries
- Failure to provide proper advice
- Customer slips and falls in the office
- Negligence in the advertising and promotion of a property.
- Errors made in the preparation of offers and sales contracts for customers
- Failure to forecast the market trends correctly, leading clients to lose money
- Negligence in following all federal and state laws relating to the real estate business
Let's go through some of the exposures a real estate agent may face:
Recommended policies Under Real Estate Business Insurance
Comprehensive Real Estate Business Insurance Costs
Real estate businesses have unique insurance needs, depending on the type of real estate handled, the size of your business and other factors like:
- Value of Assets insured
- Annual payroll
- Annual revenue
- Clientele represented (commercial or residential properties)
Who Benefits from Real Estate Business Insurance?
Selling a property is a complex process given all the documentation and the stages of transactions. Real estate agents must manage common business risks along with profession-specific risks. Agent error, data loss or a system breach could cause financial losses for your clients. A good Real Estate Agency Insurance Program is important to protect your business, the public, employees and customers.
Frequently Asked Questions (FAQ) about Real Estate Business Insurance
1. Do real estate agents need E&O insurance?
Having E&O insurance is necessary to protect yourself against mistakes and oversights in the performance of your professional services. Risks covered include professional errors, negligence, mistakes, omissions that cause financial loss to a client.
2. Do real estate agents need commercial auto insurance?
Real estate professionals may need business auto insurance policies since they may transport clients to lunch or property showings. Vehicles used for business purposes or titled in a business name should be insured on a commercial auto policy.
3. What kind of small business insurance is required for a real estate office?
Real estate offices should invest in business insurance to protect their financial assets. Several insurance policies are recommended for real estate offices, including professional liability insurance, general liability insurance, commercial auto insurance, commercial property insurance, cyber insurance and commercial umbrella insurance.
4. What does general liability insurance cover for real estate agents?
General liability insurance for real estate businesses covers the risks such as third-party bodily Injury, property damage liability, personal and advertising injury, premises medical payments and resulting defense and settlement for covered claims.