Realtors, title agents, and mortgage brokers work with customers as they negotiate one of the biggest purchases they'll ever make. The stakes are high for real estate professionals because their customers depend on their professional advice to make informed decisions. Any error - real or imagined - can easily result in a lawsuit, which means your real estate clients need adequate insurance to protect their business assets.
Whether your client is a property manager, title abstractor, or real estate agent, they need a variety of insurance policies to address their liabilities. Consider suggesting the following coverages to your client:
General Liability Insurance
If your client has an office that business partners or clients visit, they should think about buying a General Liability Insurance policy to shield them from premises liability and property damage claims. For instance, a client could visit your client's office, trip over a rug, and break a leg. Such an event triggers your client's GL policy, which pays for your client's legal fees if the injured visitor decides to sue.
Property Insurance / Business Owner's Policy
A Property Insurance policy protects your client's office, plus the equipment and furniture in it. Property Insurance covers the cost of restoring or replacing insured business items that are lost or damaged by fires, windstorms, or theft. Because real estate professionals enjoy a low risk profile, they may qualify for a Business Owner's Policy . Also called a BOP, this policy bundles General Liability with Property Insurance together. It keeps your client's rates low while still providing them with adequate protection.
Errors & Omissions (E&O) / Professional Liability Insurance
Real estate agents and appraisers have specialized knowledge they use to guide their customers through a complicated purchase. If your client misses a deadline or forgets a form, their customer could sue to recover their losses. That's why Errors and Omissions Insurance, or Professional Liability Insurance, is so important. It covers your client's lawyer fees and court costs, plus the settlement or court-ordered judgment if your client is found liable.
Workers' Compensation Insurance
Workers' Compensation Insurance is a state-mandated coverage that protects your client when an employee claims they've suffered occupational injuries or illnesses. It covers the injured employee's medical expenses and lost wages during recovery. Even though a real estate professional may have a low risk profile, accidents can happen anywhere. Moreover, if your client is in property management, they may have a custodial staff that increases their exposure to Workers' Compensation claims.