Why Every Real Estate Agent Needs Insurance

Whether you own a large agency or operate as an independent, part-time agent, the real estate industry can be full of lucrative opportunities. However, while helping to facilitate these purchases can be rewarding, it may also be full of potential pitfalls. As a real estate professional, your clients, including both sellers and buyers, have entrusted you to oversee one of the most expensive transactions they may ever have. Because even a slight error could be financially devastating, insurance must be a top priority.

What Types of Insurance Do I Need?

The real estate business is rife with risks and exposures that must be addressed by appropriate loss control measures. When assembling a suitable insurance portfolio, real estate agents may find value in the following types of policies:

• Professional liability insurance
• General liability insurance
• Commercial property insurance
• Business interruption insurance
• Workers’ compensation insurance
• Commercial auto insurance
• Cyber liability insurance

Why Is Coverage Important?

A real estate agent or business may require robust insurance for many reasons. Consider the following potential scenarios and how the right coverage could make all the difference in managing resulting losses:

• If you make a mistake listing a property, such as by failing to disclose structural issues, you could be sued. Professional liability insurance, also known as errors and omissions insurance, may limit out-of-pocket expenses for attorney fees, settlements and judgments.
• While staging a seller’s home, you could cause an accident, such as a fire or water damage. In such situations, your general liability insurance could provide a payout to limit resulting financial repercussions.
• The real estate business often requires clients to entrust you with sensitive information, such as banking records and social security numbers. Any data breach could compromise this information, but cyber liability insurance can help mitigate your losses.
• Although the real estate industry may focus largely on your clients’ properties, your own offices and assets must also be protected. If a fire or burglary impacts your business, commercial property insurance can help with repair, replacement or rebuild costs.

We’re Here to Help

Contact All Insurance Multiservices in Tucker, GA, today to learn more about coverage options available near you.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.