Insurance for Real Estate Agents


Just like many other professionals, as a real estate agent you’re subject to lawsuits

and claims filed against you in performing your real estate duties. From a customer

losing a money on a transaction due to a negligent real estate broker error to a

delay or cancellation in a sale as a result of a agent-made closing document mistake

to a mishandled property inspection, blunders in real estate transactions can and

do happen. That’s why insurance for real estate agents provides protection against

the potential financial burden that accompanies a lawsuit.



To avoid putting your professional and personal financial future on the line, consider

general liability, errors and omissions (E&O), and commercial auto insurance for

real estate agents.



Real Estate Agents General Liability Insurance



General Liability insurance provides the real estate professional with protection

from injury claims, advertising claims, and property damage claims. Typically, a

general liability policy also covers slander, libel, and infringement on intellectual

property, such as copyrights and trademarks. A general liability policy provides

compensation for defense costs in a lawsuit brought against you, including court

costs, witness fees, and attorney fees, in addition to judgment or settlement monies.

This coverage can be written on a stand-alone basis or as part of a BOP.



Real Estate Error and Omissions (Real Estate E&O) Insurance



As a realtor, you may already have general liability insurance, which covers losses

relating to injury, property damage, and advertising. But general business liability

insurance doesn’t generally protect you against lawsuit claims arising from a customer’s

lawsuit for errors, omission, or failure to perform during a real estate transaction

that caused the customer a loss. Examples include a real estate agent misrepresenting

a property. An E&O policy shields the realtor’s assets and pays legal costs, should

a suit be brought against him. Just like doctors need malpractice insurance, realtors

need E&O insurance.



Real Estate Agents Commercial Auto Insurance



Unless you’re able to take the subway or bus to show your properties, most real

estate agents must use a vehicle to carry out the day-to-day operations in order

to land a real estate sale. Coverage for damage to your vehicle from a traffic accident

along with liability damages that arise from a collision can be purchased in a commercial

auto insurance policy.



Real Estate Agents Additional Coverages



In addition to general liability, E&O, and commercial auto insurance, there are

a few other recommended types of insurance for real estate agents.


Real Estate Agents Workers Compensation Insurance – For instance,

if you have employees working for your real estate business, you’ll need workers

compensation insurance, which provides your employees protection against job-related

medical illnesses and workplace injuries


Real Estate Agents Employment Practices Liability InsuranceWith

the rise in employment-related litigation, it’s wise to have employment practice

liability insurance (EPLI), which provides protection against harassment, wrongful

termination, and discrimination claims among others.


Real Estate Agents Business Owner Policy –A business owner policy,

or BOP, is an insurance policy package that assembles basic coverages needed for

the real estate agent business owner in one bundle. A typical BOP includes business

interruption insurance, property insurance, business liability, and crime insurance,

to name a few. However, depending on the specific risks that the real estate agent

faces, additional components can be included in the bundle.


Real Estate Agents Certificate of Insurance – Any time you’re considering

hiring a independent contractor to help you in your real estate business, it’s important

to verify that the contractor is covered with general liability insurance, which

will cover damages if the contractor’s error or accident causes property damage.

Ask your contractor to give you a copy of his Certificate of Insurance, which is

a document insured by an insurance company and certifies that an insurance policy

has been purchased. A certificate of insurance shouldn’t be substituted for the

actual insurance policy, it’s generally reliable proof of insurance coverage.



No matter how seasoned a realtor you are or how careful you are in your real estate

transaction duties, you are at risk for losses, damages, and lawsuits, whether unfounded

or not simply by doing your job. Mitigate these risks by purchasing the proper insurance

for real estate agents.