Each time a realtor deals with a new client, his or her risk exposures increase. General Liability (GL) insurance protects realtors from third-party liability claims from customers, for example, if the agent held an open house and a potential buyer spilled red wine all over their client’s new carpet, they may claim that the agent’s business damaged property belonging them.
Or if a client walking up to their office on a rainy day slips on the wet floor inside causing them to break their wrist or causes some other type of personal injury, the agent then technically caused them physical harm. In addition, they could claim charges of libel, slander, copyright infringement, or privacy invasion, which all fit into this same category.
If for any reason, any type of GL claim befalls a real estate business, this insurance for real estate agents will help pay for related expenses, such as legal defense, settlements, and court-appointed judgments, including medical bills. It can also protect an insured whether they are in their office, or out meeting with clients.
Property insurance for real estate agents
Another basic policy of extreme importance, if you’re a real estate agent who rents or owns your office, you’re likely required to carry commercial property insurance coverage, either by your landlord or your mortgage lender. That’s because unforeseen situations may arise.
For instance, if a thunderstorm tears the roof of your office, and water damages your computer equipment and furnishings, or a thief breaks into your building and steals office equipment, or a fire breaks out in a neighboring office, causing damage to your space that their insurance doesn’t cover, your property insurance can help you repair or replace items lost or damaged.
Many real estate agents choose to work from the comfort of their homes. Be sure to check your homeowner’s insurance policy to see if it protects computer equipment in your home office. Unfortunately, this typically is not the case, and it may actually exclude coverage for business-related items, in which case you might want to consider purchasing a basic property insurance policy so that you’ll be able to replace items quickly and easily should something happen to them.
There are various other types of insurance for real estate agents that you can benefit from, depending on your exposures and the types of risks you face. Speak to an agent about any questions or concerns regarding this important coverage.