This post was written for Play Louder by a contributing author. Please note that contributing opinions and claims are that of the author. They are not always in strict alignment with our own opinions. – Joe
When running a real estate agency, there is always something to do. That may be meeting clients, finding new properties, or showing off these properties.
One of the things a lot of people do not realize is that the real estate business exposes agents to complex, unique, and specific risks. Although most real estate agency owners can solve common problems easily, some problems require external intervention. This is where real estate insurance designed for real estate agents comes in.
Real estate insurance is insurance that is designed to cater to the unique needs of real estate agents. It helps protect agents against risks, liabilities, and the costs of any claims made against them. These risks and liabilities can be due to the agent’s mistakes, omissions, or errors, while some of them are out of their control.
For example, omitting vital data or information about a property listing is an agent’s fault, while not knowing that a property can get flooded under very specific circumstances might not be their fault. For all those cases, a buyer or property owner can make a claim and the agent is then liable for damages.
One of the main benefits of getting real estate insurance is that it protects the agent against claims of property damage or bodily injury. For example, if a client slips and gets injured while viewing a property, the real estate agent can be sued for damages. Do note that this type of protection does not cover mistakes that you make during the provision of your professional services.
Clients expect real estate agents and agencies to provide them with accurate information about the properties they purchase or lease through them. If important details are omitted and these omissions end up costing money to fix, an agent or agency can be sued for professional liability.
This type of protection is also known as errors and omissions liability and also includes professional negligence on the agent’s or agency’s part. Real estate insurance can help protect agents and real estate agencies from these types of claims.
Although many real estate agencies do not think about auto insurance, some insurance providers like to include it in all business insurance plans, including real estate insurance. The reason why they bundle this insurance is that many real estate agents and agencies own vehicles that they use to move from property to property. All it takes for these vehicles to become a liability is a simple distraction.
Because personal insurance will not cover injuries or damages that occur during the provision of professional services, auto insurance can come in handy for real estate agencies. Some insurance plans will also cover damage to the vehicle through no fault of your own.
This includes damage due to bad weather, fire, vandalism, theft, and more. By covering these types of damages, the included auto insurance can save real estate businesses repair or replacement expenses for damaged vehicles.
Savvy clients only trust real estate agencies and agents who have real estate insurance. This is usually a way to protect themselves in case something happens during or after the purchase process. This type of insurance gives them peace of mind in knowing that they will be protected.
As an agent or agency, it certainly is possible to find the right insurance for you or your business. However, it is not easy to examine all possible options available and find the right insurance for your business.
Fortunately, you can examine all the possible options available, tailor your insurance to your business’s and agents’ needs, and get real estate insurance in minutes through various platforms. Just ensure that the insurance you get covers everything you need to give you the peace of mind you need.
Real estate agent insurance is an important part of doing business if you do not want to be liable for any damage done by a real estate agent. This type of insurance will cover all liabilities and damages, so your business is not decimated when a large claim is made against your business or one of your agents.