1. Real Estate Agent Insurance Secure your Real Estate Business!

2. What are the risks of Real Estate Business? • The real estate business faces threats of lawsuits and claims due to the nature of its business operations. • Clients can file a case against you even for giving wrong advice. • When dealing with property, any damage can be a costly affair. •  You have extended liability towards all your agents.

3. Risks of a Real Estate Agent Real estate agents are direct contacts for clients. Since clients invest a significant amount on real estate, they can file a legal case on you for any errors on your part. To save yourself from these risks, you need real estate agent insurance. 

4. A few common sources of risk are: • Misrepresentation Lawsuits • Conflicts of interest with the client • Lawsuits due to non-disclosure of information

5. What policies do you need? • The real estate business insurance package consists of numerous policies. Let's go through some of the common ones.

6. Business Owners Policy • A Business owners policy protects businesses from loss due to damage in the assets and third-party liabilities. BOP consists of commercial property, business income and general liability.  • The risks that BOP would cover in your real estate business are: • Lawsuits filed over loss or property damage of customer • Copyright infringement  • Damage in business property

7. Commercial Property • Commercial property insurance covers commercial property from damages due to listed perils such as theft, fire, and natural calamities.  • For example, if your office building catches fire, commercial property insurance will have your losses covered.  Commercial General Liability • General liability insurance protects a business from third party liabilities arising due to operations of the company. • The coverages of this insurance include bodily injury, personal damage, and property damage. • This policy is covered in realtor insurance to protect you from legal fees, or loss due to injury to clients.

8. Business Interruption Insurance • Business interruption insurance covers losses when your business cannot operate, and you lose substantial income. • For example, if your building catches fire and you cannot conduct meetings with clients in the office, this might lead to loss of business income. Business interruption insurance will keep you covered in such situations.  Professional Liability Insurance • Professional liability insurance protects a business against a financial loss to a client as a result of a professional error.  • Since real estate frauds are increasing, this policy will cover you from charges of misrepresentations, non-disclosure, wrong documentation, conflicts of interests, and similar cases.

9. E&O • Errors and omissions insurance covers you against claims of negligence, wrong advice, or insufficiency.  • E&O will cover you from claims of clients that arise from the advice you provide to them.  • For example, a client might sue an agent from your company for non-disclosure. You are responsible for getting your agent out of the situation. E&O insurance for realtors comes to your rescue here.  Cyber Liability Insurance • Cyber liability insurance covers losses rooting from cyber risk. •  Realtors store sensitive data of their clients online. Online data poses a high risk of theft and misuse. Cyber liability comes to your rescue from losses arising due to such data breaches. 

10. Endorsements to the real estate agent insurance • Endorsements to the real estate agent insurance usually arise from the perils that do not fall under the named perils. You might get additional coverage for: • Depreciation  • Theft due to negligence • Polluted properties • Computer shutdown

11. As a realtor, you face many risks as a part of your day-to-day operations, but you need not worry if you have an insurance coverage. Click on the button below to learn more about real estate agent insurance package, or follow the link in the description below.