Business Insurance for Realtors

As a realtor, you operate like an independent contractor. Whether you have your own staff or are completely on your own, the industry has changed, particularly since the housing crisis in the late 2000s. As a result of more complicated transactions and application procedures, your clients are more likely to sue.

When could a realtor be held liable? Before the buyer officially purchases the property, you’re essentially responsible for its security and fair advertising. Further, as you handle multiple forms, you need to keep buyers’ personal information safe.

As a result of these factors, it’s essential to have multiple commercial insurance policies. The following are recommended, if not required, for realtors:

• Errors & Omissions Insurance: To mitigate many of the risks listed above, an E&O policy, also known as professional liability insurance, protects you and your business in the event of a lawsuit. Should you be served, lacking the proper insurance coverage can result in high financial losses. Particularly, this policy backs you up in disclosure and transaction lawsuits or if a buyer files a claim over defective property.
• Commercial Property Insurance: Many realtors operate out of a physical office. This policy can compensate you when damage occurs to your office and its contents, including vandalism, fire and windstorms. Depending on the coverage level, your insurance additionally covers any losses and damages at a seller’s property.
• Business Owners Policy: This basic policy for any small business covers general liability, interruptions and property damage. A three-in-one BOP can assist you if an accident occurs in the office and you need to pay for the damages or any medical costs. It can also compensate you if a natural disaster or other event causes your business to temporarily close.
• Business Auto Insurance: If you’re using a car for business purposes, including driving from the office to an open house, get the proper degree of coverage with a commercial auto insurance policy.
• Data and Records Insurance: Concerned about customer or vendor financial information getting stolen? Realtors manage both paper and electronic records and, even when you’re careful, there’s always a risk that data could be usurped. In response, this policy can pay for data recovery, credit monitoring and replacing damaged or destroyed files.
• Workers’ Compensation: When you employ multiple full-time workers, understand that injuries can occur on your premises, even in an office with administrative staff. As a result, states require you to have workers’ compensation coverage, which then pays for the injured employee’s medical care and missed salary.

Are you a realtor in Connecticut looking to adjust your coverage? To make sure you’ve got enough insurance for an emergency, reach out to Ion Insurance. To learn more, give us a call today at 203.439.2815.