Insurance agents and real estate agents often share similar responsibilities: informing clients on available options, processing claims and managing policies.
Real estate agents frequently work closely with insurance agents when helping homebuyers acquire natural disaster coverage for their new homes, creating an ideal opportunity to strengthen client relationships and boost referral business for both parties.
General Liability
Real estate agents face many risks in their job as real estate brokers and agents. Their daily activities often include showings, open houses and negotiations – activities which could potentially expose clients or third parties to bodily injury and property damage claims from clients or third parties. General liability coverage provides essential protection from legal expenses and settlement costs that may arise, while protecting against damages related to libel or slander claims. Likewise, workers’ compensation coverage covers injury claims should an agent’s employees become injured on the job.
Commercial real estate agents and brokers, like all licensed professionals, may make mistakes during the listing, renting or selling process that could result in legal expenses or settlement payments arising from miscommunications or mistakes during that process. Errors could include missed disclaimers, improper interpretation of contracts, comingling of funds or unfair practices which could give rise to claims against their license. Errors and omissions insurance provides coverage against such legal expenses and potential settlement payments related to errors and omissions that might occur during that process.
Residential and commercial real estate agents alike must frequently conduct property showings, open houses, and tours – which may result in accidents or damage to the properties being shown. Commercial general liability coverage provides protection for any repairs or replacement costs in such circumstances; additionally it covers third-party bodily injuries sustained as a result of viewings as well as third-party advertising injuries and premises medical payments.
Real estate offices should consider purchasing not only general liability and errors and omissions policies, but also business auto, hired and non-owned auto (HNOA) insurance and commercial umbrella coverage to safeguard against risks such as property damage caused by an agent or client; car accidents between company-owned vehicles used by clients; data breaches which compromise private information. These policies offer additional protection from risks faced by real estate agencies such as property damage to rented homes by agents and clients, car accidents between company-owned vehicles owned by clients with clients driving them and data breaches which compromise private information that puts private information at risk.
Commercial Auto
Real estate agents who use their personal cars for business should consider commercial auto insurance. This policy protects against damages to both the vehicle itself and any third-party properties caused by work-related car accidents as well as medical bills associated with injuries sustained during collisions. Commercial auto coverage can often be found bundled together with general liability coverage to be offered as part of bundle packages to sole proprietors or brokerage companies with employees.
Real estate agents spend much of their time meeting with clients, searching for properties and driving prospective buyers to showings – creating risks that cannot be entirely mitigated with personal auto insurance alone. Commercial auto policies provide protection for company vehicles owned by the firm against potential legal fees and damages related to these activities, and may help fulfill small business auto insurance requirements in certain states.
Allstate stands out for its customer service reputation and variety of discounts available to real estate agents looking for auto insurance savings. Their Drivewise program rewards safe driving while their Name Your Price tool enables agents to tailor a policy that meets their budget needs. Progressive has an outstanding customer satisfaction rating while their Snapshot program allows drivers to earn discounts based on driving behavior.
Errors and Omissions (E&O) insurance is an essential component of a real estate agent or broker’s Business Owner Protection (BOP), protecting them against client lawsuits that might arise from miscommunication, mistakes or oversights during property development and sale processes. E&O insurance provides coverage against legal expenses should an error or oversight lead to miscommunication with clients during property development, sales transactions or property development processes; furthermore it helps cover costly legal fees which the agency or brokerage might become responsible for due to being held liable; additionally inland marine insurance provides protection for materials and equipment stored onsite – essential policies which provide peace of mind to agents/brokers alike!
Business Owner’s Policy (BOP)
A business owner’s policy (BOP) is a comprehensive commercial insurance package designed to offer both liability and property coverage for small businesses. Property coverage accounts for any losses or damage to customer-owned items stored on-site while liability protects against situations of personal injury and property damage caused by third parties. Many providers offer BOPs that can be customized with additional coverage options known as endorsements.
Insurance companies typically include business interruption coverage to reimburse expenses incurred while rebuilding after a natural disaster, making this coverage particularly useful for real estate agents who rent properties out while repairs take place and lost income is compensated for as a result of closure due to such events.
Eligibility for a business owner’s policy depends on a number of criteria related to industry type, risk level and business goals. Small businesses operating in low-risk industries tend to qualify as eligible recipients since it’s less likely they’ll experience an incident than with higher risk industries.
Real estate insurance agents need to understand the various forms of coverage provided by a business owner’s policy so they can assist their clients in selecting one that meets both their needs and budget. Policies vary in cost depending on insurer and coverage details; some providers offer minimum premiums which vary based on location or risk, while others have higher rates for high-risk professions like medicine, whereas Acuity’s Bi-Pak provides property and liability coverage with additional options such as errors & omissions insurance, employment practices liability coverage and full building replacement cost coverage all rolled into one convenient package!
Errors & Omissions (E&O)
Errors & Omissions (E&O) insurance provides real estate firms, title companies, and other service providers protection against legal claims of professional negligence. This policy covers attorney fees, court costs and settlements or judgments due to mistakes committed during service provision. Also referred to as Professional Liability Insurance, errors & Omissions coverage is often required by law or licensing boards as part of their license requirements for various professions, such as lawyers, medical professionals and real estate agents.
Examples of E&O mistakes may include, among others, accountants providing ineffective financial advice to clients, interior designers choosing an inappropriate color when repainting rooms, and real estate agents failing to include important property details in sales contracts. Although these errors may appear minor at first, they could cost firms dearly in legal fees and related litigation-related expenses; furthermore, some are even sued for failing to notify clients about potential hazards like toxic mold or lead paint exposure.
Your state and profession determine whether E&O coverage is required of you, but its presence is often strongly recommended. Policies start at approximately $100 monthly for most real estate agents.
E&O insurance is an invaluable form of liability coverage, but it shouldn’t replace other forms of business coverage like workers’ compensation and commercial auto. Claims related to work-related injuries or damage to customer property will be covered under workers’ comp, while data breach coverage provides coverage against lost or stolen personally identifiable information. Furthermore, an E&O policy won’t cover your losses should you engage in dishonest real estate dealings or engage in any criminal activities associated with real estate transactions.
Workers’ Compensation
At every stage in their real estate careers, whether as an agent or broker or managing a large brokerage, real estate professionals need business insurance to protect themselves and their employees. General liability and workers’ compensation policies are key, although state laws vary accordingly; your clients may require errors and omissions (E&O) insurance as part of your contract, while using personal vehicles for work requires commercial auto coverage as well. Furthermore, considering lessee’s risk only insurance could help cover damages to both structures and contents in your building.
Workers’ compensation policies are mandated in most states for businesses employing employees, including real estate agents and brokers who operate as sole proprietors. Workers’ comp policies provide medical expenses and lost wages coverage for employees injured while on-the-job; for instance, salespeople might trip on uneven steps or experience backache while carrying furniture around a property for work-related tasks.
Most brokerages require their employees to have this coverage, while individual agents working part time should also carry it as it could reduce legal fees should a lawsuit arise.
Insureon’s licensed agents specialize in finding real estate professionals the business insurance that meets the unique needs of their agency or brokerage. Our industry specialists understand every facet of real estate insurance, working with top U.S. insurance carriers to find you coverage at a budget-friendly rate. With online applications and free quotes available 24/7, Insureon helps real estate professionals quickly obtain customized plans tailored just to them – hear what other customers like yourself have said about us when purchasing insurance through Insureon!