Real estate agents, brokers and appraisers specialize in helping their clients find their perfect homes – which can be extremely fulfilling work – but can also pose numerous risks. Therefore, those in this industry should secure themselves against claims or lawsuits related to their work by investing in business insurance that covers any potential liabilities related to it.
As you might imagine, every business is unique and insurers take many factors into account when setting its premiums; that explains why costs for real estate agent business insurance policies can differ substantially even within the same state or city.
An important consideration in selecting real estate business insurance policies for real estate agents is their size and type, along with employee count. Larger firms tend to be at greater risk for liability claims than their smaller counterparts, increasing your premium costs accordingly. It would also be wise to speak with a local insurance agent regarding any special features or features like unusual office layout that might increase costs; you might find they can recommend additional policies or add-ons that better meet your individual needs.
An important element that can influence the cost of business insurance for real estate agents is how much data you store, and its sensitivity. Because real estate agents tend to handle highly confidential data such as names, addresses, financial records, dates of birth and Social Security numbers that is subject to data breaches; as a result, this increases their risk. Furthermore, this high-risk information increases costs associated with insurance for real estate agents.
Errors and Omissions Insurance (E&O) should also be part of your real estate business’s coverage portfolio. E&O insurance helps cover legal fees in the event that someone sues your firm over negligent advice such as failing to properly disclose property issues to buyers or failing to verify loan documents before sending them off for approval by lenders. Typically included as part of your Business Owner Policy which can save money by bundling general liability with property insurance in one low rate policy.
Workers’ compensation insurance is another essential feature that all business owners should have in case of workplace injuries, while it may not be required in all states. Workers’ comp usually covers medical costs and lost wages incurred from injuries suffered on the job; it should cover you or one of your employees in these instances.
Locating business insurance for real estate agents may seem complex, but it doesn’t have to be. By working with an experienced insurance professional who specializes in this industry and has access to multiple insurers, comparing quotes quickly for coverage tailored to fit your firm.