Real estate can be an enticing business opportunity, yet it comes with numerous risks. From property damage during showings to client disputes, the industry presents many potential liabilities that require protecting. With proper business insurance for real estate agents in place, agents can protect themselves and their livelihood.
Business insurance protects your real estate business against financial losses caused by lawsuits, damages, theft and other risks. It can cover lost income should an employee become injured or sick and be unable to work. Your policy can be tailored specifically to fit the needs of your real estate business; for instance increasing the deductible can lower upfront costs while still being affordable when filing claims comes up.
Real estate agencies typically require their agents to obtain Errors and Omissions insurance. This policy protects your business against claims of negligence or misrepresentation in real estate transactions, providing defense from claims of negligence or misrepresentation and providing coverage up to your limits of coverage for legal fees, settlements or judgments that might occur as a result.
Commercial Auto Coverage Your real estate agency likely employs staff members who drive to show properties or meet with clients, and this type of commercial auto coverage provides protection in case one of them causes an accident that leads to damages for your business. In addition, you may wish to add business umbrella insurance as additional protection should a catastrophic event take place.
Worker’s Compensation Insurance
In many states, workers’ compensation (BOP) insurance is mandatory business insurance that pays medical expenses and wages when an employee is injured on the job, protecting your business from lawsuits that might cost thousands to defend itself against. You can add BOP coverage for as little as $50/month ($603/year).
General Liability Coverage
A general liability policy provides your business with protection against claims by third-parties alleging property damage or injury to their premises or individuals, often required by landlords and clients, and can cover legal expenses up to your limit of liability. Real estate agents can add professional liability for even greater protection.
Your real estate office likely contains expensive equipment that’s essential to running it successfully. By adding property insurance as part of your real estate agent business insurance package, you can protect the inventory, computers, office furniture and more against repair or replacement costs and lost rental income caused by covered perils.
Real estate agents store confidential client data digitally. Cyber liability insurance can cover your costs in case it’s compromised through data breaches or ransomware attacks – it can even protect against ransomware attacks! You can add it to your real estate business insurance policy from as little as $130 annually.