How does General Liability insurance protect real estate professionals?
General liability insurance helps to protect real estate agents from common industry accidents and risks. Most real estate brokers have this insurance, and it’s the most common type of policy for small businesses and self-employed professionals.
People working in real estate interact closely with clients and frequently enter other people’s property. That creates a greater chance for certain accidents to occur, like a property manager accidentally leaving stains on a tenant’s expensive rug or a client falling and injuring their back on the stairs at a mortgage broker’s office. In situations like these, general liability insurance can cover related expenses, like replacing the rug or paying for the client’s medical bills.
What does General Liability insurance for real estate businesses cover?
General liability insurance covers common accidents that can occur in the real estate industry, like damage to someone’s property. If you accidentally knock over an expensive vase during an open house, for example, general liability insurance could help to cover the cost of a repair or replacement.
In addition, you’ll get coverage for accidents which injure someone else (excluding employees, who can be covered under a workers’ compensation policy). If a client trips over a cord and injures their wrist during a visit to your office, this type of real estate agent insurance can help pay for their medical expenses.
With general liability insurance, real estate professionals get help covering a variety of costs, such as:
- Injuries to people who are not employees
- Damage to someone else’s property
- Accusations of libel and slander
Learn more about what general liability insurance covers.
Why do real estate professionals need General Liability insurance?
One of the main types of risks that general liability insurance covers is damage to someone else’s property. Since real estate agents spend a considerable amount of time in other people’s homes or businesses, it’s important to have this insurance to help cover the costs of any accidental damage that may occur.
Real estate broker liability insurance allows you to protect your business so you can focus on your work without worrying about unexpected costs. Without this insurance, you might have to pay for expensive damages or medical bills out of pocket, which could put your business at risk.
In some states, real estate agents are required to have general liability insurance in order to get their professional license. Additionally, real estate businesses and clients often require agents to carry real estate agent liability insurance coverage.
What are some common risks faced by real estate professionals?
Here are some of the common risks real estate agents could be exposed to at work:
Damage to someone else’s property
While showing a home to clients, you accidentally spill coffee on an expensive rug. General liability insurance for real estate brokers can help cover the costs of cleaning or replacing it.
Accidents that hurt someone
A visitor to your office trips and falls on a rug in the lobby. General liability insurance provides protection for accidents that cause bodily injury to a third party by helping to cover related medical bills.
Court and legal fees
A client claims that you failed to inform them about a major issue with a property, like foundation problems or termite damage. Real estate E&O insurance can protect against accusations of negligence by helping to cover the legal costs.
Advertising harm
You take a photo of your clients in front of their newly purchased home and post them on your website. Your client sees the photos and sues you for invasion of privacy. E&O insurance can help cover your legal fees.
Libel, slander and defamation
In some of your advertising materials, you suggest that a competing real estate agent doesn’t have their clients’ best interests at heart. If that agent sues you, real estate liability insurance could help cover the ensuing legal costs.
How much does General Liability insurance for real estate professionals cost?
NEXT offers custom general liability insurance policies so you can get the right coverage for your business.
General liability costs between $66 to $85 for 44% of our customers at NEXT. But thanks to the limited risks in your line of work, you’ll likely pay significantly less. In fact, the median cost for real estate agent liability insurance is just $25 per month.**
Some of the factors which affect the cost of general liability insurance include:
- How many employees you have
- The state where you work
- Your claims history
- How long you’ve been in business
- How high you set your limit
NEXT offers tailored business insurance for real estate professionals
NEXT makes it easy to get convenient, affordable liability insurance for your real estate business. It only takes a few minutes to find the coverage you need with our simple and straightforward services.
Everything can be done online using your computer or mobile device. Simply apply, compare insurance options, and purchase coverage to get your certificate of insurance.
Get an instant quote online today.
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